Charitable Incorporated Organisations

29 / 01 / 2018

A charitable incorporated organisation (CIO), being a registered charity, is an alternative legal structure for charities.  With effect from 1 January 2018 charitable companies are able to convert to a CIO with a phased implementation time table lasting until August 2018.

Key statutory instruments relating to CIOs which came into force on 1 January 2018 include:

  • The Charites Act 2011 (Commencement No 3) Order 2017 (SI 2017/1230) – brings into force section 228 to 234 of the Charites Act 2011, which enables charitable companies, registered societies and community interest companies to convert to become charitable incorporated bodies
  • Charitable Incorporated Organisations (Consequential Amendments) Order 2017 (SI 2017/1231) – amends schedule 6 (Appeals and Applications to Tribunal) of the Charities Act 2011 to enable community interest companies to appeal a decision by the Charity Commission to refuse an application to convert to a CIO and the CIO’s registration as a charity.
  • Charitable Incorporated Organisations (Conversion) Regulations 2017 (SI 2017/1232) – creates a much needed conversion process for the conversion of a community interest company to a CIO and supplements the process already in place for charitable companies to convert to a CIO.
  • Index of Company Names (Listed Bodies) Order 2017 (SI 2017/1233) – provides  for all CIOs (including Scottish CIOs) to be included in the categories of bodies which the registrar of companies at Companies House must maintain in the business name index maintained by Companies House. As such CIOs are required to comply with the rules on the use of sensitive words or expressions in their name.

With its simplified set up process and reduced reporting and accounting requirements a CIO is an attractive alternative to a charitable company and these new rules will be welcomed by those considering setting up or converting to a CIO.