Definition
A project charter is a formal document that authorizes a project to begin and provides the project manager with the authority to apply organizational resources to project activities. It outlines the project's objectives, scope, key stakeholders, high-level requirements, and success criteria. The charter serves as a foundational agreement between the project sponsor and the project team, ensuring alignment on the project's purpose and expected outcomes. For instance, a charter might authorize a new software development project, detailing its business need, expected benefits, and the assigned project manager. It is distinct from a project plan, which provides detailed steps for execution, whereas the charter grants the initial mandate. This concept is fundamental to project initiation and is covered on the PMP, CAPM, and PMI-ACP examinations.