Stokvels are an important part of many South African communities. They are groups where members save money together and help each other financially. Because stokvels handle money from many people, it’s very important to have clear rules to protect the group’s money and make sure everything is fair and safe.
Here are the main rules and practices that every stokvel should follow to keep its money safe and make sure the group runs smoothly.
1. Write Down Your Stokvels Rules in a Constitution
The first step to protecting your stokvel’s money is to write down clear rules in a document called a constitution. This is a guide that explains how the stokvel works. Some important things to include are:
How much money each member must pay and how often.
Who can join the stokvel and what each member’s responsibilities are.
How the money will be saved, spent, or invested.
How and when members can take money out.
What happens if someone doesn’t pay on time or breaks the rules.
How to add new members or what to do if a member leaves.
What happens if a member dies or if the stokvel closes.
Having these rules written down helps everyone understand what is expected and protects the group from confusion or fights.
2. Choose Trusted Leaders and Give Them Clear Roles
A stokvel needs leaders to manage the money and the group. Usually, the stokvel members choose a management committee made up of a chairperson, a secretary, and a treasurer.
The treasurer is very important because they handle the money. They must keep detailed records of all payments and show deposit slips at every meeting.
Leaders must be chosen by voting, and if there are any changes in leadership, members should be told before the change happens.
This system helps make sure the stokvel’s money is in good hands and that members trust their leaders.
3. Use a Bank Account for Safety
One of the best ways to protect stokvel money is to keep it in a bank account. This account should be opened in the stokvel’s name—not in one person’s name.
At least two or three people should be allowed to sign for any money taken out. This means no single person can take money without others knowing.
Avoid keeping large amounts of cash with one person to prevent theft or loss.
By using a bank, the stokvel reduces the chance of money disappearing or being stolen.
4. Keep Clear and Honest Records
Transparency is key. The stokvel must keep detailed records of all money coming in and going out.
Financial reports and deposit slips should be shared at every meeting.
Everyone should be able to see how much money is in the stokvel and how it is spent.
This openness builds trust and helps stop any misunderstandings or suspicions.
5. Hold Regular Meetings for Decisions
Regular meetings give members the chance to talk about finances, check the records, and make important decisions together.
Major decisions, like changing leaders or using the money for something big, should be voted on by the group.
At least half of the members (a quorum) should be present for votes to be valid.
By making decisions together, the stokvel stays democratic and fair.
6. Set Penalties for Missed Payments
Sometimes members might miss their payments or break other rules. The constitution should clearly say what happens in these cases.
Penalties might be fines or even removing a member from the stokvel.
The rules should also say if expelled members get their money back or not.
Clear penalties help keep everyone responsible and the stokvel financially healthy.
7. Have a Way to Solve Disputes
Disagreements can happen in any group. Your stokvel needs a clear way to solve these problems.
The leadership committee usually helps settle disputes.
The constitution should explain how disputes are handled to avoid confusion and fights.
This keeps the stokvel peaceful and focused on its goals.
8. Plan for Closure and Money Distribution
Sometimes a stokvel comes to an end. When this happens, the remaining money and assets must be shared fairly.
Money should be divided according to what each member contributed.
If the stokvel owes money, members should share the debt fairly as well.
Having these plans in the constitution protects members’ investments if the group closes.
9. Extra Protections for Your Stokvel
For added support and legitimacy, you can register your stokvel with the National Stokvel Association of South Africa (NASASA). This helps protect your group and gives access to advice and resources.
Be careful of stokvel scams. Always keep communication clear and promises realistic. If money is stolen or mismanaged, report it to the police since there isn’t a government body that oversees stokvels specifically.
Check also: Stokvels Are Back in a Big Way – And the Numbers Prove It
Stokvels are powerful tools for building savings and community support in South Africa. But for a stokvel to work well and protect everyone’s money, it must have clear, written rules and good leadership. By following these important rules—like having a written constitution, using a bank account, holding regular meetings, and keeping clear records—your stokvel can grow safely and successfully.
