Charitable Incorporated Organisation Structure Now Available

Charitable organisations will be pleased to learn that a new legal structure has recently become available to them. The charitable incorporated organisation (“CIO”) is an incorporated body with a separate legal personality and limited liability designed specifically and exclusively for charities. CIOs will be registered with, and regulated by, the Charity Commission. The Charity Commission has started accepting applications to register new charitable organisations as CIOs, and later this year and into next year existing charitable organisations will gradually become eligible to convert into CIOs. 

This is good news for charities as the new structure will provide some of the benefits of being a company, whilst allowingsome of the more onerous requirements that a company status imposes to be sidestepped.