Skye Bridge

A Committee Charter is a document that answers the who, what, when, where, and why of a Committee. It establishes the ground rules of a Committee, their scope of work, and their authority. A Committee Charter will include:

Purpose. The Committee Charter will describe the purpose of the Committee so that all Committee members and the Board, understand why this committee exists. This may include a mission and/or vision statement of the Committee.

Numbers. The Committee Charter will indicate how many people can be on the Committee.

Terms. The Committee Charter will indicate the term of each member, including the Chair Person.

Establishment of Committee Chair. The Committee Charter will indicate if the Committee Chair is appointed by the Board or elected amongst the volunteers of the Committee. The term of the Chair will also be defined. For example, some Committee Chairs are assigned to an annual Chairperson role, even though their role in the Committee maybe longer. The Chairperson can be re-appointed or re-elected.

Powers (and Limitations). The Committee Charter will describe the authority that the Committee has been granted by the Board. In many Community Associations, the Committee is charged with seeking information, reviewing items, and making a recommendation to the Board. Committees typically do not have decision making authority. An exception would be an Alternative Dispute Resolution Committee, who’s purpose is to hear cases and render a decision (that can then be appealed by the affected homeowner to the Board of Directors).

Budget. Many Committees are not provided a budget, or even if they are, they have to submit a proposal to the Board for approval to spend the budget.In some instances, a Committee may have a set spending authority. For example, a Landscaping Committee may be able to review Common Area needs and expenses, and spend up to $5,000 without receiving the Board’s approval. 

Roles. The Committee Charter should describe the composition of the Committee (how many members, chairs, etc.). A secretary will be charged with taking minutes of the Committee. The Chair Person conducts or leads meetings, and also reports back to the Board of Directors.

Reporting to the Board. The Committee Charter should outline how the Committee Chair will report information back to the Board. Sometimes, this is in the form of submitting the minutes of the Committee. A written report may accompany the Committee’s minutes. Some Boards invite the Committee Chair to the Board meeting, and the Chair provides a verbal presentation to the Board (which should accompany written documentation such as the minutes of the Committee).

Visibility. All members of the Committee and the Board should have a copy of the Committee Charter, but this document should also be made visible to all Homeowners.

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Summary: A Committee Charter is an outline for the existence of a Committee. It explains the Committee’s purpose, their scope of work, their authority, and who is on the Committee. It will also explain how the Committee reports to the Board and any spending authority they have (or don’t have). In many cases, Committees may not have spending power or authority, but rather make recommendations back to the Board.