Project Management guide · Planning and scope
What Is a Project Charter? Template, Examples and Tips
A project charter is the short document that formally authorises a project. It names the sponsor and project manager, states why the project exists and what it must achieve, and gives the project manager authority to use organisational resources.
Key takeaways
- A project charter formally authorises a project and the project manager.
- It covers purpose, objectives, scope, milestones, budget, risks and roles.
- Keep it short and get it signed before detailed planning.
Why the charter matters
- Creates formal authorisation and a clear starting point.
- Aligns the sponsor, project manager and stakeholders on purpose and scope.
- Gives the project manager authority to act.
- Becomes the reference point when scope or priorities are questioned later.
What to include
| Section | Content |
|---|---|
| Purpose and business case | Why the project is needed and the benefits expected |
| Objectives | Measurable SMART objectives |
| High-level scope | What is in and out of scope; see project scope |
| Key deliverables | Main outputs; see deliverables |
| Milestones | Major dates |
| Budget | Summary budget or funding range |
| Stakeholders | Key people and groups; see stakeholder management |
| Risks, assumptions and constraints | Top items known at the start; see constraints |
| Roles | Sponsor, project manager and authority levels |
| Approval | Signatures and date |
Example (summary)
Project: New customer portal. Purpose: reduce support calls by letting customers manage accounts online. Objective: cut account-related calls by 30% within six months of launch. Scope: account view, invoices, password reset; excludes mobile app. Budget: $150,000. Sponsor: Head of Customer Service. Project manager: A. Rossi. Key risk: integration with billing system.
Tips
- Keep it short: two to four pages.
- Write objectives that can be measured at the end.
- List exclusions explicitly to prevent scope creep.
- Get the sponsor's signature before planning in detail.
- Revisit it at major milestones.
Free templates for this topic
Frequently asked questions
Who writes the project charter?
Usually the project manager or sponsor drafts it; the sponsor approves and signs it.
Who signs the project charter?
The project sponsor, and sometimes other key stakeholders such as the customer.
When is the project charter created?
During initiation, before detailed planning begins.
How long should a project charter be?
Typically two to four pages. Detail belongs in the project management plan.
What is the difference between a project charter and a project plan?
The charter authorises the project at a high level; the project management plan explains in detail how it will be delivered.
Is a project charter the same as a business case?
No. The business case justifies the investment; the charter authorises the project and summarises the business case.
Can a project charter change?
It should be stable, but major changes in purpose or scope may require a revised charter approved by the sponsor.
Do Agile projects need a project charter?
Many Agile teams use a lightweight charter or product vision to align on purpose, goals and boundaries.
How does a project charter compare with a project initiation document?
A project initiation document (PID) is a more detailed PRINCE2 document that serves a similar purpose to a charter; see project initiation document.
What happens if there is no project charter?
Projects without a charter often suffer from unclear authority, disputed scope and weak sponsor support.