Before a project gets off the ground, several documents need to exist: a detailed project plan, an accurate work schedule, and a realistic budget. But the document that makes everything else official — the one that gives a project manager the formal authority to start — is the project charter.
Our free project charter template gives you a ready-made structure to secure sponsor approval, define scope, align stakeholders, and document everyone’s expectations before work begins. Download it below and read on for a practical guide to writing one that works.
What Is a Project Charter?
According to the PMBOK Guide, a project charter is “a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.” In plain terms: without a charter, there is no project. There’s just an idea.
A project charter does more than describe the project at a high level. It is the document that authorizes the project’s existence and gives the manager official permission to use the organization’s resources — budget, people, tools, and time — to deliver it.
For a charter to be valid, it must be approved by the project’s sponsor: the executive, client, or funding body with the authority to commit organizational resources. The charter doesn’t always have to be a formal multi-page document. In some organizations, a short memo or email that covers the key points and carries a sponsor’s sign-off is sufficient. What matters is that the sponsor knows what the project is about, endorses the project manager’s leadership, and agrees to fund it.
Project Charter vs. Project Brief
These two documents are often confused, but they serve different purposes and are created at different points in the project lifecycle.
The project charter answers the strategic question: why does this project exist, and do we have permission to proceed? It’s created at the very start of project initiation, before detailed planning begins. Its primary audience is the project sponsor and senior stakeholders who need to authorize the work.
The project brief (or project plan) answers the operational question: how will we execute this project? It’s created after the charter is approved, during the planning phase. It goes into detail about tasks, timelines, team assignments, and methodology.
The charter comes first, and it’s deliberately high-level. Once it’s approved, the project brief can be developed with much greater precision because the team finally has authorization to spend time planning in depth.
Project Charter Template: Key Components
A project charter should outline only the key information a sponsor needs to make an authorization decision. It’s not a project plan. Here are the sections that belong in every solid charter:
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Project overview and purpose.
What is this project? Why does it need to happen now? This section frames the business problem or opportunity the project is responding to, and states what the project will and won’t do to address it.
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Project goals and deliverables.
What does the project aim to achieve? State goals in measurable terms where possible. List the specific outputs — reports, software, infrastructure, campaigns, products — the team is expected to produce.
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Project scope.
Define both what is in scope and what is explicitly out of scope. The out-of-scope list is as important as the in-scope list. Anything left undefined becomes a source of scope creep later on. If a stakeholder expects the project to cover something not listed here, this is the section that surfaces that misalignment early.
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Project requirements.
Which major tasks must be completed? Which processes need to be established? What technical, legal, or organizational conditions must the project meet? Keep these at a high level — detailed requirements belong in the project plan, not the charter.
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Project schedule and milestones.
What are the expected start and end dates? What are the primary milestones between initiation and delivery? At this stage, exact dates may not be known. A rough project timeline with estimated phase durations is sufficient and expected.
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Project budget.
What is the overall cost estimate? Include the total budget and a high-level breakdown by category if available: labor, materials, software, external services. A realistic budget estimate, even if rough, helps the sponsor make an informed authorization decision.
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Key stakeholders and roles.
Who is the project sponsor? Who is the project manager? Who are the key team members and external stakeholders? List roles and responsibilities clearly. The charter is also where the project manager’s formal authority is defined — what decisions they can make independently and which require escalation.
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Assumptions and constraints.
What conditions is the project plan built on that aren’t yet confirmed? What limitations exist — regulatory, technical, budgetary, timeline, or staffing — that the team must work within? Documenting assumptions now reduces disputes later when conditions turn out to be different than expected.
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Strategic context and business case.
How does this project contribute to organizational strategy? What is the return on investment or expected business impact? This section makes the case for why the project deserves organizational resources over competing priorities.
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Approval and authorization.
Who must sign off before the project can proceed? In most organizations this includes at minimum the project sponsor and the project manager. In regulated industries and government contexts, additional signatories (department heads, legal representatives, budget officers) may be required. This section should include a signature block with named roles and a date field.
Types of Project Charter Templates
Not all projects need the same charter format. Here are the most common variants:
Simple project charter template
A one- or two-page document covering the basics: project purpose, objectives, scope, timeline, budget, stakeholders, and sponsor signature. Best for smaller internal projects or teams that don’t require formal governance processes. Our free template follows this format.
One-page project charter template
A condensed version that fits on a single page, usually in a structured table format. Useful for fast-moving projects, initial idea validation, or organizations where leadership needs a quick summary rather than a detailed document. Forces prioritization — if it doesn’t fit on one page, the project isn’t defined clearly enough yet.
Agile project charter template
Adapted for iterative software or product development projects. Replaces fixed deliverable lists with a project vision statement, target outcomes, and a list of initial sprints or iterations. Includes a project champion (equivalent to the product owner) and is designed to accommodate scope evolution rather than lock it down.
Six Sigma project charter template
Structured around the DMAIC methodology (Define, Measure, Analyze, Improve, Control). Includes a problem statement, process baseline metrics, target improvement values, and assigned belt-level roles (Green Belt, Black Belt). Focused on measurable quality improvement rather than project delivery.
Construction project charter template
Includes line-item cost estimates with labor rates and quantities, site-specific requirements, regulatory compliance obligations, contractor roles, and phased milestone schedule. More detailed than a typical business project charter because construction projects have higher upfront planning requirements and contractual obligations.
How to Write a Project Charter
A project charter is written at the very beginning of a project, when information is limited. The goal isn’t to have every answer — it’s to document what you know, acknowledge what you don’t, and get formal authorization to proceed with planning. Here’s how to approach it:
Step 1: Start with the business problem, not the solution. The first thing a charter needs to establish is why this project needs to exist. What problem does it solve? What opportunity does it capture? Starting with the “why” makes every other section easier to write and gives the sponsor the context they need to evaluate the request.
Step 2: Define scope — including what you won’t do. State clearly what the project covers and, just as specifically, what it doesn’t. The out-of-scope list is what prevents stakeholders from quietly expanding expectations after authorization is granted. If there’s any ambiguity about whether something is included, resolve it here.
Step 3: Use rough estimates, not false precision. At charter stage, you won’t have exact timelines or precise cost figures. Don’t invent them. Use ranges (“12–16 weeks”), assumptions (“based on a three-person team”), and confidence levels (“preliminary estimate subject to detailed planning”). A sponsor who sees a suspiciously precise charter will ask harder questions. A sponsor who sees honest estimates tends to trust the manager more.
Step 4: Align with organizational strategy. Every project competes for resources with other projects. The charter needs to answer why this project should receive funding over alternatives. Link the project’s objectives to specific business goals, strategic priorities, or compliance requirements. This is what gets the charter approved.
Step 5: Get the right signatures. A charter without sign-off is just a memo. Identify who needs to authorize the project and make sure the signature block includes their names and roles. In some organizations, the project manager writes the charter and the sponsor signs it. In others, a steering committee or budget committee must also approve it. Know your organization’s requirements before you circulate the document.
Step 6: Keep it short. A project charter is not a project plan. If yours is running longer than three to five pages, you’re including detail that belongs elsewhere — in the project plan, the risk register, or the technical specification. The charter should be something a busy executive can read and sign in 15 minutes.
Common Misconceptions About Project Charters
“The charter must be a formal document.” Not always. In some organizations, a structured email or a short memo with the right information and the sponsor’s written approval constitutes a valid charter. The formality level should match the organization’s governance requirements, not a fixed standard.
“The sponsor writes the charter.” Sponsors issue and sign the charter, but they rarely write it. In practice, the project manager typically drafts the charter and the sponsor reviews, adjusts, and approves it. The PM has the most operational knowledge; the sponsor has the authority. Both are needed.
“You need complete requirements before writing the charter.” The charter comes first, requirements come later. At charter stage, you’re working with rough scope and preliminary information. Waiting for complete requirements before chartering is backwards — it means you’re doing detailed planning work before you have authorization to do any work at all.
“A detailed charter is a better charter.” Not true. A 25-page charter is almost always a project plan masquerading as an initiation document. The charter should be concise enough to read quickly and focused enough to answer one question: does the sponsor authorize this project to proceed?
“Once signed, the charter is fixed.” If the project scope, budget, or strategic context changes significantly after the charter is approved, the charter should be updated and re-signed. Significant changes to a project that aren’t reflected in a revised charter leave the project manager operating outside their original authorization.
Project Charter Benefits
- Formal authorization. The charter is the document that officially starts the project. Without it, the project manager has no sanctioned authority to commit resources, assign work, or make decisions on the organization’s behalf.
- Scope creep prevention. Because the charter defines both what is in scope and what is out of scope before work starts, it creates a documented baseline. Any request to expand the project scope after authorization can be evaluated against the charter and either formally approved or declined — rather than silently absorbed.
- Stakeholder alignment. Everyone named in the charter — sponsor, project manager, team leads, external stakeholders — has a shared reference for project objectives, constraints, and expectations. Misalignments that would otherwise surface mid-project are resolved at authorization instead.
- Strategic clarity. By requiring the project to demonstrate its link to organizational strategy, the charter ensures resources go to projects that actually advance business goals rather than projects that just seem urgent in the moment.
- Decision-making reference. Throughout the project, the charter serves as the baseline for decisions about scope, priority, and resource allocation. When disagreements arise about what the project should or shouldn’t include, the charter is the document everyone can point to.
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