A scheme runs on trust. Trust becomes easier when expectations are written down, agreed on, and applied consistently.
This template is designed to be copied into a document and adapted. It is intentionally plain, practical, and suitable for South African schemes.
If you are not sure about a section, keep it simple. The most important thing is that members can understand it and that it is applied fairly.
How To Use This Template
- Step 1: Copy the full template into a shared document.
- Step 2: Edit the placeholders in square brackets.
- Step 3: Review it in a meeting and record the decision.
- Step 4: Store the final version where new members can access it.
Scheme Rules Template
1) Scheme Details
- Scheme Name: [Scheme Name]
- Scheme Code (Optional): [e.g. ZET]
- Start Date: [YYYY-MM-DD]
- Purpose: [One sentence on why the scheme exists]
2) Membership
2.1 Who Can Join
- Membership is open to: [friends and family / employees / community members / other]
- A member joins only after:
- Their details are recorded, and
- They have accepted these rules, and
- Their first contribution is received (unless the group agrees otherwise).
2.2 Member Roles
- Chairperson: [Name or “Elected”]
- Treasurer: [Name or “Elected”]
- Secretary: [Name or “Elected”]
If a role is vacant, the group will appoint an interim role-holder within [14] days.
2.3 Member Changes
- A member may leave by giving [30] days notice.
- If a member leaves, their entitlement is:
- [Option A: They receive their contributions back less any approved penalties]
- [Option B: They receive nothing unless the group approves a payout]
- [Option C: Other]
The scheme will always record how the final payout was calculated.
3) Contributions
3.1 Contribution Amount And Due Date
- The contribution amount is R[amount] per [month/week].
- Contributions are due by [day of month].
- Payment method: [bank transfer / cash / other]
3.2 Payment Reference
- Members must use this reference format: [SCHEME_CODE-MEMBER_NUMBER]
- If a member cannot use the reference, they must send proof of payment to the treasurer on the same day.
3.3 Late Contributions
- A contribution is late after [number] days.
- Late handling:
- [Grace period]
- [Penalty amount or percentage]
- [Loss of benefits until caught up]
The rule must be applied consistently to all members.
3.4 Unknown Or Unmatched Payments (Suspense)
If money is received and cannot be matched to a member:
- It will be recorded as unallocated.
- It may not be spent or treated as income.
- It will be allocated only when the scheme can match it confidently.
4) Money Going Out (Spending And Payouts)
4.1 Approval Requirements
- Any payment out of the scheme account must have:
- A recorded reason, and
- Approval by [one / two] authorised members.
4.2 Payment Thresholds
- Payments under R[amount] require approval by: [Treasurer only / Treasurer + Chairperson / other]
- Payments at or above R[amount] require approval by: [Two admins / Full vote / other]
4.3 Proof And Record Keeping
For every outgoing payment, the treasurer must keep:
- proof of payment
- recipient details
- a short note explaining why the payment was made
5) Meetings And Decisions
5.1 Meeting Frequency
- Meetings happen [monthly / quarterly / as needed].
5.2 Quorum
- A meeting is valid if at least [number or percentage] of members are present.
5.3 Voting
- Standard decisions require [simple majority / 60% / other].
- Major decisions require [66% / 75% / other].
Major decisions include:
- changing the contribution amount
- changing member benefits or payout rules
- approving a large payout or large spend
- changing the scheme purpose
The scheme must record:
- what was decided
- who voted
- the outcome
- the date
6) Disputes And Behaviour
- Members must treat each other respectfully.
- If there is a dispute, the group will follow this process:
- Step 1: Attempt to resolve it in a meeting.
- Step 2: If unresolved, appoint [one or two] neutral members to propose a solution.
- Step 3: Vote on the proposal.
If behaviour threatens the safety of members or the integrity of the scheme, the group may suspend or remove a member with a vote of [threshold].
7) Data Protection (POPIA Basics)
The scheme will:
- collect only the personal information it needs to operate
- keep member information private
- avoid sharing full lists of phone numbers, ID numbers, bank details, or beneficiary details in public groups
Access to sensitive information is limited to: [Treasurer / Admins / other].
8) Changes To These Rules
- These rules can be changed only through:
- a recorded proposal
- a meeting with quorum
- a vote meeting the required threshold
The updated rules must be shared with all members.
9) Sign-Off
By participating in this scheme, members confirm they have read and accepted these rules.
- Date Approved: [YYYY-MM-DD]
- Approved By (Names):
- [Name 1]
- [Name 2]
- [Name 3]
Notes For Different Scheme Types
Use these notes only if they apply to your scheme.
Stokvels
- If you rotate payouts, publish the rotation order and agree how swaps are handled.
Burial Societies
- Define waiting periods clearly.
- Document the claim process and payout timeline.
Investment Clubs
- Decide whether you track member value as equal shares or units.
- If you track units, document how the unit price is calculated and how withdrawals work.
Property Syndicates
- Document capital call rules, timelines, and what happens if a member cannot pay.
- Document how rental income and sale proceeds are distributed.