Fund Constitution

Article 1 — Name & Nature

1. The Fund shall be known as the Mgazi Family Funeral Fund ("the Fund").
2. The Fund is a private family mutual aid association established for the purpose of pooling voluntary contributions to provide discretionary financial assistance for funeral-related costs of eligible members.
3. The Fund is not an insurance policy, funeral plan contract, collective investment scheme, or deposit-taking institution. All assistance is discretionary and subject to available funds.

Article 2 — Objectives

The objectives of the Fund are to:

1. Pool monthly contributions from family members into a shared reserve;
2. Provide discretionary financial assistance ("assistance grants") to cover funeral-related costs for eligible members;
3. Maintain transparent governance, accountability, and a complete audit trail;
4. Preserve the dignity of the family during times of bereavement;
5. Invest surplus funds conservatively to preserve value and liquidity.

Article 3 — Membership

3.1 Eligibility

Membership is limited to the defined Mgazi family group: descendants, spouses, and partners of the defined family anchor. This is a private, closed-membership fund — not open to the general public.

3.2 Admission

To become a member, an applicant must:

• Complete the registration form and verify their identity;
• Provide proof of family relationship where required;
• Accept the Terms & Conditions, this Constitution, and the Privacy Notice;
• Pay their first monthly contribution.

The Committee reserves the right to approve or refuse membership applications.

3.3 Members' Rights

• Vote on financial policy changes, contribution rates, and benefit caps;
• Nominate and change beneficiaries;
• Access monthly statements and fund reports;
• Submit claims in accordance with the claims process;
• Raise disputes through the dispute resolution process;
• Voluntarily withdraw from the Fund.

3.4 Members' Obligations

• Pay monthly contributions on time;
• Keep personal and beneficiary details current;
• Comply with the Fund Rules, this Constitution, and the Terms & Conditions;
• Participate in governance when called upon.

3.5 Suspension & Termination

• Benefits may be suspended for non-payment beyond the 7-day grace period;
• Reinstatement requires clearing of all arrears;
• A member may be expelled for fraud, misrepresentation, or persistent non-compliance, subject to Committee decision and appeal rights.

Article 4 — Contributions

1. Minimum: $5 USD per month (or currency equivalent in GBP, ZAR, ZWL).
2. Maximum: Based on member preference (no upper cap enforced, though $100/month is the standard upper tier).
3. Due date: 1st of each calendar month.
4. Grace period: 7 days from the due date.
5. Contributions may be made via Stripe (global), PayNow (Zimbabwe), or PayFast (South Africa).
6. Changes to minimum contribution rates require a majority vote of active members.

Article 5 — Committee Structure & Roles

5.1 Composition

The Fund is governed by an elected Committee consisting of:

5.2 Elections

• Committee members are elected by a majority vote of active members;
• Terms of office: 2 years, renewable;
• Elections held at the Annual General Meeting;
• Vacancies may be filled by Committee appointment, ratified at the next general meeting.

5.3 Decision-Making

• Ordinary decisions (administrative, reminders, documentation): Chair + Treasurer may decide;
• Financial policy changes (contribution rates, benefit caps, investment policy): require majority vote of active members;
• Claims approvals: Claims Officer prepares the pack; Treasurer + one Trustee must both approve (dual authorisation);
• The Chair has a casting vote in the event of a tie.

Article 6 — Beneficiaries

1. Each member shall nominate one primary beneficiary and one backup beneficiary.
2. An optional benefit split rule may be specified (e.g., 100% to primary).
3. Changes to beneficiaries require a signed change form and a 7-day cooling-off period (urgent exceptions at Committee discretion).
4. In case of conflict, the latest valid signed form on record takes precedence.
5. If no valid beneficiary nomination exists, next-of-kin rules as defined in applicable law shall apply.

Article 7 — Waiting Periods

1. Months 0–3: No benefit payable. Refund of contributions only (minus admin fees) in case of death.
2. Months 4–6: Up to 50% of the maximum benefit, subject to fund availability.
3. Months 7+: Full eligibility up to the maximum benefit cap, subject to fund availability and Committee approval.

Waiting periods are designed to prevent adverse selection and protect the sustainability of the Fund for all members.

Article 8 — Claims Process

1. The designated beneficiary submits a claim form with supporting documents within 30 days of the death event.
2. Minimum documentation: death certificate, proof of claimant identity, proof of beneficiary authority, funeral invoices/receipts, payout destination details.
3. The Claims Officer conducts eligibility checks (membership status, waiting period, payment history) and verifies documentation.
4. The Claims Officer prepares a claim pack for approval.
5. Payout requires dual authorisation: Treasurer + one Trustee.
6. If a claim is disputed, it is escalated to the Dispute Panel (see Article 10).
7. Large payouts may be split into multiple transactions if platform limits apply.

Article 9 — Financial Management

9.1 Reserve Policy

• Minimum operating reserve: 3 months of expected contributions;
• Claim reserve target: Sufficient to pay at least two maximum benefits before allowing benefit increases;
• If reserves fall below the minimum, the Committee may reduce benefit payouts or request additional contributions.

9.2 Liquidity Rule

• Keep 20% of fund balance as rapid-access liquidity (accessible accounts);
• 80% may be invested in approved low-risk instruments.

9.3 Investment Policy

• Objective: Capital preservation and liquidity, not growth;
• Eligible instruments: Money market funds, treasury bills, short-term deposits, high-grade short-duration bond funds;
• Prohibited: Cryptocurrency, leverage, illiquid private assets, concentrated single equities;
• Monthly valuation and reporting required;
• Quarterly stress testing (20% drawdown scenario).

9.4 Fees & Transparency

• Actual administrative costs, platform fees, and payment processing fees may be deducted;
• All deductions are disclosed in monthly statements;
• Monthly statements provided to all members showing: closing balance, investments, reserve ratio, contributions, claims.

Article 10 — Dispute Resolution

Disputes shall be resolved through the following escalation ladder:

1. Step 1 — Informal resolution: The parties attempt to resolve the matter within 7 days.
2. Step 2 — Dispute Panel: A 3-person Dispute Panel (elected annually) reviews the matter and issues a decision within 14 days.
3. Step 3 — External mediation: A family elder council or professional mediator facilitates resolution.
4. Step 4 — Legal action: Only as a last resort, subject to the Fund's governing law.

Article 11 — Record-Keeping & Audit Trail

The following records shall be maintained:

• Member register (active, suspended, exited)
• Contributions ledger with transaction references
• Beneficiary register with change history
• Claims register (submitted, approved, rejected, paid)
• Meeting minutes and resolutions
• Monthly financial statements
• Investment valuations and reports

All records shall include timestamps and be retained for a minimum of 7 years for financial records.

Article 12 — Data Protection & Privacy

1. Data minimisation: Only data necessary for Fund administration is collected.
2. Access control: Only the Treasurer, Secretary, and Claims Officer may access full member records.
3. Retention: Financial records kept for 7 years minimum; beneficiary records as required.
4. Breach process: Any data breach must be reported to the Committee within 24 hours and to affected members without undue delay.
5. Full details in the Privacy Notice.

Article 13 — KYC & Anti-Fraud

• All members must verify their identity (ID + selfie or in-person confirmation);
• Beneficiary payout destinations must be validated;
• The Fund maintains a fraud prevention checklist and may request enhanced verification for high-value claims;
• Dual authorisation for all payouts prevents single-person fraud.

Article 14 — Meetings

• Annual General Meeting (AGM): Held once per year to review fund performance, elect Committee members, and approve policy changes.
• Special meetings: May be called by the Chair or by petition of 30% of active members.
• Quorum: 50% of active members (or their proxies).
• Meetings may be held virtually.

Article 15 — Amendments

1. This Constitution may be amended by a two-thirds majority vote of active members.
2. Proposed amendments must be circulated at least 21 days before the vote.
3. Amendments take effect upon approval unless a later date is specified.

Article 16 — Dissolution

1. The Fund may be dissolved by a two-thirds majority vote of all members.
2. Upon dissolution, outstanding claims shall be settled first.
3. Remaining funds shall be distributed proportionally to active members based on their total contributions.
4. All records shall be retained for the statutory minimum period.

Article 17 — Governing Law

This Constitution is governed by the laws of the Fund's registered jurisdiction. Members in different countries remain subject to their local laws in addition to these rules.