Is this scheme-rules template a legal constitution?

It is a practical starting point, not a completed legal document. Adapt it to the group's purpose, have members approve it correctly, and obtain advice for property, investment, insurance, lending or substantial assets.

Can a stokvel change its rules later?

Yes, using the amendment process in the current rules. Record the proposal, vote and effective date, then circulate and store the updated signed version. Avoid retrospective changes aimed at an existing dispute.

Will every bank accept this template?

Not necessarily. Banks apply product-specific onboarding requirements and may provide their own template or request additional clauses and documents.

Scheme Rules Template (Plain Language)

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.

Important Use Note

This template is not designed to settle the legal ownership, tax or regulatory treatment of a property syndicate, investment fund, lending business or funeral-insurance arrangement. Use it to organise the members' agreement, then obtain specialised advice where the activity requires it. Check the selected bank's current constitution and mandate requirements before applying.

Authoritative References

This template provides general information and is not legal, tax, insurance or financial advice.

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.

Important Use Note

Authoritative References

This template provides general information and is not legal, tax, insurance or financial advice.

Scheme Rules Template (Plain Language)

How To Use This Template

Scheme Rules Template

1) Scheme Details

2) Membership

2.1 Who Can Join

2.2 Member Roles

2.3 Member Changes

3) Contributions

3.1 Contribution Amount And Due Date

3.2 Payment Reference

3.3 Late Contributions

3.4 Unknown Or Unmatched Payments (Suspense)

4) Money Going Out (Spending And Payouts)

4.1 Approval Requirements

4.2 Payment Thresholds

4.3 Proof And Record Keeping

5) Meetings And Decisions

5.1 Meeting Frequency

5.2 Quorum

5.3 Voting

6) Disputes And Behaviour

7) Data Protection (POPIA Basics)

8) Changes To These Rules

9) Sign-Off

Notes For Different Scheme Types

Stokvels

Burial Societies

Investment Clubs

Property Syndicates

Important Use Note

Authoritative References

Related Articles

Adding A New Member: The Checks And Agreements To Complete First

How To Reconcile A Stokvel Bank Statement Every Month

Changing Treasurers? A Safe Handover Checklist For Your Scheme

Scheme Rules Template (Plain Language)

How To Use This Template

Scheme Rules Template

1) Scheme Details

2) Membership

2.1 Who Can Join

2.2 Member Roles

2.3 Member Changes

3) Contributions

3.1 Contribution Amount And Due Date

3.2 Payment Reference

3.3 Late Contributions

3.4 Unknown Or Unmatched Payments (Suspense)

4) Money Going Out (Spending And Payouts)

4.1 Approval Requirements

4.2 Payment Thresholds

4.3 Proof And Record Keeping

5) Meetings And Decisions

5.1 Meeting Frequency

5.2 Quorum

5.3 Voting

6) Disputes And Behaviour

7) Data Protection (POPIA Basics)

8) Changes To These Rules

9) Sign-Off

Notes For Different Scheme Types

Stokvels

Burial Societies

Investment Clubs

Property Syndicates

Important Use Note

Authoritative References

Related Articles

Adding A New Member: The Checks And Agreements To Complete First

How To Reconcile A Stokvel Bank Statement Every Month

Changing Treasurers? A Safe Handover Checklist For Your Scheme