Stokvel constitution template: what to include, with a checklist

Why your stokvel needs a constitution

A stokvel constitution is the written agreement that says how your group runs: who's in, what they pay, when the money comes out and what happens when something goes wrong. It doesn't have to be a legal document full of long words. It just has to be clear, complete and agreed by everyone.

Most stokvel arguments aren't about bad people. They're about two members remembering the same agreement differently. A written constitution settles that before it starts. You'll need one to open a bank account in the stokvel's name too: as a University of Cape Town study of stokvels puts it, "If a stokvel applies for a bank account, a written version of this constitution will be required."

What a stokvel constitution covers

A good constitution answers five groups of questions:

• Who and why. The stokvel's name, its purpose, and who can be a member.
• Money in. How much each member contributes, how often, by when, and how.
• Money out. When payouts happen, in what order or on what date, and how the pot is split.
• People in charge. Who the office bearers are, usually a chairperson, treasurer and secretary, and what they can and can't decide.
• When things go wrong. Late payments, members leaving, disputes, and how the stokvel ends.

The checklist template

Copy this list into a document or a WhatsApp note and fill in each line with your group. If a line is blank, you've found a conversation you still need to have.

1. Name and purpose

• Name of the stokvel:
• What we are saving for:
• Type: rotating (turns), savings club (one payout date) or goal (one target):

2. Membership

• Who can join:
• Maximum number of members:
• How a new member is accepted:
• What each member agrees to when they join:

3. Contributions

• Amount per member:
• How often (weekly, monthly):
• Due date each round:
• How members pay:

4. Payouts

• Payout date, or the order of turns:
• How the pot is split:
• Where payouts are paid to:

5. Office bearers

• Chairperson:
• Treasurer:
• Secretary:
• What they can decide alone, and what needs the group:
• How they are replaced:

6. Missed payments

• What counts as late:
• What happens after one missed round:
• What happens after repeated missed rounds:

7. Leaving early

• How a member gives notice:
• What they get back, and when:

8. Disputes

• Who a member raises a problem with first:
• What happens if that doesn't settle it:

9. Changing the rules

• Who can propose a change:
• How a change is agreed:

10. Ending the stokvel

• When the stokvel ends:
• How remaining money is shared out:

11. Signatures

• Every member's name, signature and date.

Tips for writing it

Use plain language. If a member can't explain a rule back to you, rewrite it. "Pay R500 by the 3rd of every month" beats "contributions shall be remitted timeously."

Be specific about money. Write amounts in rands and dates as dates. "Around December" causes arguments. "1 December" doesn't.

Decide the hard cases now. Missed payments and early exits are uncomfortable to discuss with friends. They're far more uncomfortable to discuss after they happen.

Keep it where everyone can see it. A constitution that lives in the secretary's drawer only protects the secretary. Every member should have a copy.

How constitutions work on Moneyclub

On Moneyclub you don't have to draft a constitution from scratch. Every club runs under the Moneyclub Stokvel Constitution, plus the group rules your members accept when they join. Here's what that constitution sets out, in plain terms. Read the full text before you join, because it is the binding version.

• Joining. Members register on Moneyclub, agree to the Moneyclub Terms and Conditions, and agree to the constitution when they join a club.
• Who runs it. Each stokvel is governed by an Executive Committee of a Chairperson, Treasurer and Secretary. The committee approves and manages transactions, keeps membership and contribution records, and communicates with members.
• Voting. This is different from many traditional stokvels, so it's worth being clear: under the Moneyclub constitution, members don't have voting rights on investment decisions or on the general operation of the stokvel. The constitution can only be changed by resolution of the Executive Committee, and members don't vote on those changes either.
• Group rules. A savings club can add its own group rules, set by the club's admin when the club is created. They can cover things like the purpose, contribution amount and frequency, minimum participation period and withdrawal conditions. They're published in the app before you accept, they bind every member, and where they conflict with the constitution on legal structure, compliance or governance, the constitution wins.
• Money in and out. Contributions are made through the Moneyclub platform. Withdrawals follow the club's rules, and a member can end their participation by giving notice in the app.
• Disputes. Disputes go to mediation, with a mediator agreed between the Executive Committee and the member. If they can't agree, Floatpays can nominate a neutral mediator, whose decision is final.
• Ending a stokvel. If a stokvel is dissolved, funds are shared out to members in proportion to what they contributed, after any obligations are settled.
• Tax. Each member is responsible for their own tax.

Around that, the app handles the parts a paper constitution can only describe. Every member is ID-verified. Everyone accepts the rules when they join, and in a Rotating Stokvel that includes the order of turns. Every contribution and payout shows on the club feed for every member to see. Club money is held with a regulated South African bank, never in an organiser's personal account. See how your money is protected.

Moneyclub is built by Floatpays (Pty) Ltd, an authorised financial services provider (FSP 52120) and registered credit provider (NCRCP 16757). Running a club is free, and any fee for moving money is listed on the fees page.