Stokvel constitution template
A constitution is simply your circle's rules, written down and signed before any money moves. Below is a plain-language template you can copy and fill in, followed by what each clause is for. Written for Australian and South African savings circles, with a note on each country's practice at the end.
Get the template
Free, no email required. Copy it into a doc, fill in the blanks with your group, and have every member sign it.
The template
STOKVEL CONSTITUTION
1. NAME AND PURPOSE
1.1 The name of the group is: ______________________ ("the Circle").
1.2 The purpose of the Circle is: ______________________.
1.3 The Circle is a private savings group. It is not a bank, credit provider or managed investment scheme.
2. MEMBERSHIP
2.1 The founding members are: (name / phone / email)
1. ______________________
2. ______________________
3. ______________________
4. ______________________
5. ______________________
2.2 The maximum number of members is ______.
2.3 A new member may join only with the approval of ______ of existing members.
3. CONTRIBUTIONS
3.1 Each member contributes A$______ per (week / fortnight / month / quarter).
3.2 Contributions are due on ______________________.
3.3 Payment is made by ______________________ and proof must be provided to the organiser.
4. PAYOUT ROTATION
4.1 Each round, the full pool is paid to one member.
4.2 The agreed rotation order is:
1. ______________ 2. ______________ 3. ______________
4. ______________ 5. ______________
4.3 The order may only be changed with the agreement of ______ of members.
5. BANKING AND RECORDS
5.1 Contributions are held in: ______________________.
5.2 The following members may access the account: ______________________.
5.3 The organiser records every contribution and payout. Every member may inspect the record at any time.
6. LATE PAYMENTS
6.1 A member has a grace period of ______ days.
6.2 A late payment attracts a fee of A$______.
6.3 A member who is more than ______ days late may forfeit their turn until paid up.
7. JOINING AND LEAVING
7.1 A member joining mid-cycle pays ______________________.
7.2 A member who leaves is repaid contributions made, less any payout already received.
7.3 A member may be removed for ______________________ by a vote of ______ of members.
8. ROLES
8.1 Organiser: ______________________.
8.2 Second signatory / ledger check: ______________________.
8.3 Roles run for ______ months.
9. MEETINGS AND DECISIONS
9.1 The Circle meets ______________________.
9.2 A quorum is ______ members.
9.3 Decisions pass by ______________________ majority.
10. DISPUTES
10.1 A dispute is raised first with the organiser, then with the full Circle.
10.2 If unresolved, the Circle refers the matter to: ______________________.
11. DISSOLUTION AND AMENDMENTS
11.1 The Circle may be wound up by a vote of ______ of members. Remaining funds are distributed in proportion to contributions made.
11.2 This constitution may be amended by a vote of ______ of members. Amendments must be dated and signed.
SIGNED by each member:
Name ______________________ Signature ____________ Date __________
Name ______________________ Signature ____________ Date __________
Name ______________________ Signature ____________ Date __________
Name ______________________ Signature ____________ Date __________
Name ______________________ Signature ____________ Date __________
What each clause is for
Name and purpose
Name the group and say in one sentence what it saves for — a lump sum in turn, a Christmas payout, school fees. A clear purpose settles most arguments about what the money may be used for.
Membership
List every founding member with their full name and contact details. State the maximum number of members and who approves a new one.
Contributions
State the exact amount and the exact day. "$200.00 on the first business day of each month" leaves nothing to interpret. Say how payment is made and what counts as proof.
Payout rotation
Set the full order before round one and write it into the document. Say whether the order can be swapped, and if so who must agree.
Banking and records
Name the account the pool is held in, who can access it, and who keeps the ledger. Require that every member can see the record at any time.
Late payments
Agree the grace period and the consequence before anyone is late. A small fixed late fee and a rule about losing your turn are far easier applied than invented.
Joining and leaving
Say what a new member pays to join mid-cycle, and what a leaving member is owed — usually contributions paid in, less anything already received.
Roles
Even a five-person circle benefits from a named organiser and a second person who checks the ledger. Say how long a role runs and how it is handed over.
Meetings and decisions
How often the group meets, how many members make a quorum, and what majority passes a decision.
Disputes
A simple ladder: raise it with the organiser, then the full group, then an agreed independent person. Put it in writing so nobody escalates straight to a fight.
Dissolution and amendments
How the circle is wound up and how any remaining money is split, plus the majority needed to change this document. Date and sign every version.
Australian practice
Keep amounts in Australian dollars and set contribution days around how members are paid. A private circle among people who know each other does not need to be incorporated, but the moment the group takes money from people outside it, charges interest, or invests the pool, it can stray into regulated territory — get advice from an Australian legal or financial adviser before that happens.
Hold the pool in an account that is not any one member's everyday account, and keep the ledger somewhere every member can see without asking.
In South Africa
A written constitution is standard practice for South African stokvels, and groups usually elect a chairperson, treasurer and secretary rather than a single organiser. Many groups also register with an association and open a dedicated stokvel bank account, which typically requires the signed constitution and members' ID details.
The clauses above transfer directly — change the currency to rand and the banking and role sections to match local requirements.
Common questions
What is a stokvel constitution?
It is the written agreement your savings circle runs on: who the members are, how much each pays, how often, the payout order, what happens when someone pays late or leaves, and how the rules can be changed. It is the document you point at when memories disagree.
Do we need a lawyer to write one?
For an ordinary rotating savings circle among people who know each other, no. Members write the rules themselves and every member signs. If your group will hold large balances, invest money, charge interest or admit outsiders, have an Australian legal or financial adviser review it first.
Is a stokvel constitution legally binding in Australia?
A signed agreement between members can create obligations between them, but a private savings circle is not a registered legal entity and STKVEL is not a party to it. Treat the constitution as the group's own governing document, and get advice before relying on it in a dispute over a significant sum.
What should a stokvel constitution include?
Name and purpose, membership rules, contribution amount and frequency, the payout rotation, banking and record-keeping, late payments and penalties, joining and leaving, dispute resolution, dissolution, and how amendments are passed. The template on this page covers all eleven.
Rules written. Now run them.
STKVEL keeps contributions, the rotation and payouts in one shared ledger every member can see — the living version of the document you just filled in.
Start your circle — freeGeneral information only, current as at 2026. It is not financial, legal or tax advice. STKVEL is record-keeping software and does not hold, transfer or invest member funds.