The Charities Act 2006 introduced a new legal form of incorporation designed specifically for charities. Charitable Incorporated Organisations (CIOs), are a new corporate structure giving existing and new charities an alternative option to the current range of structures available to charities. It is expected that they will become available as a new structure sometime in 2010.

Presently, charities can be set up with a corporate structure, but this means that they fall within the requirements of both company and charity law. This is not ideal as charities have to register with the Charity Commission and the Registrar of Companies, and due to dual regulation, are required to provide accounts and returns to both regulatory authorities.

CIOs will combine the advantages of a corporate structure such as having a separate legal personality which will allow them to contract and hold property in their own name and benefit from reduced personal liability for their members and trustees, and yet be regulated by a single regulatory authority. CIOs should also benefit from having less onerous reporting and accounting requirements, and should make it cheaper and easier for existing incorporated charities to comply with their administrative responsibilities.

We can advise on these issues. Should you have any queries regarding CIOs, or you wish to register your interest in CIOs with us so we can contact you once the CIO structure becomes available, please contact a member of the Commercial team at Wortley Byers on 01277 268368.

<< Return to News page