Charities

Charitable Incorporated Organisations - CIOs

The Charities Act 2006 provided for a new structure known as the Charitable Incorporated Organisation (CIO). Incorporation as a CIO is a middle position between registration of the Charity and incorporation with Companies House. A CIO is a corporate body with legal personality but it needs only to be registered with and regulated by the Charities Commission.

This aspect of the 2006 Act has not yet been implemented, and the regulations are currently in consultation. The Charities Commission website will confirm when this structure is available.
 

Applications to register a Charitable Incorporated Organisation

Applicants will need to register with the Commission a copy of their proposed constitution and any other documents requested by the Commission. Model constitutions will be available on the Commission website.

Existing Charities can be converted to CIOs but exempt Charities cannot.

An application may be refused if:-

1. The CIO is not being established exclusively for charitable purposes;

2. Its constitution does not conform with the Act; or

3. The proposed name of the CIO is too similar to an existing Charity or is misleading or offensive.
    

The benefits of a CIO

• A CIO does not need to register with Companies House

• Small CIOs will be allowed to prepare receipt and payment accounts whereas all charitable companies have to prepare accrual accounts

• A CIO’s Annual Report has only to comply with the Charities Act and not the Companies Act

• Only one Annual Return needs to be prepared

• Documents for filing need to be sent only to the Commission and not Companies House

• Changes to constitutional and governing documents only need to be reported to the Commission

• The CIO will avoid Companies House charges for registration or filing information as the Commission does this for free

• More straightforward merger arrangements will be available.
   

If you are interested in finding out more about this type of charitable structure, please contact Felix Appelbe or Andrew Penfold on 020 7242 7000 or use the Contact Request Form.
 

© Ambrose Appelbe 2008
This web site contains general information only and does not constitute legal advice. You should take suitable advice as to your specific circumstances. Ambrose Appelbe accepts no responsibility and disclaims all liability in relation to such information.