Project Management Professional (PMP) Practice Exam 2025 - Free PMP Practice Questions and Study Guide

The project charter is a foundational document that primarily establishes the project’s vision, objectives, and stakeholders. It serves as an official recognition of the project and provides the necessary authority to the project manager to allocate resources and proceed with project work.

The project charter outlines the high-level goals of the project, articulates what the project aims to achieve, and identifies key stakeholders who have an interest or role in the project. This is crucial for aligning the project with the broader organizational strategy and ensuring that all parties involved have a shared understanding of the project’s purpose.

While financial projections, roles and responsibilities, and task assignments are important aspects of project management, they are more detailed elements that are usually captured in later planning documents, such as the project management plan or a resource allocation plan. The project charter is more focused on initiating the project and setting the strategic direction rather than getting into granular details.