A Charitable Incorporated Organisation (CIO) is a legal structure specifically designed for UK. It was introduced to simplify the process of setting up and running a charity while providing the benefits of incorporation.
Key features
- Limited Liability: Trustees and members are generally not personally liable for the charity’s debts, as long as they act lawfully.
- Legal Personality: This structure can be more attractive to prospective trustees as it is the CIO that enters into contracts, employs staff, and holds property in its own name, rather than the trustees. This means the charity’s land title won’t need to be updated upon a trustee’s retirement or death, unless it is held by the Official Custodian.
- Simplified registration and reporting: CIOs are only registered and regulated by the Charity Commission and not by Companies House, simplifying reporting requirements.
| Feature | CIO | Charitable Company |
| Legal personality | ✅ | ✅ |
| Limited liability | ✅ | ✅ |
| Regulated by Charity Commission only | ✅ | ❌ |
| Must register with Companies House | ❌ | ✅ |
| Suitable for small to medium charities | ✅ | ✅ |
Types of CIOs
- Foundation CIO: Has only trustees and no wider membership.
- Association CIO: Has both trustees and a wider voting membership (similar to a traditional membership charity).
Is a CIO right for your charity?
If you’re starting a new charity or considering converting an existing unincorporated association or charitable trust, a CIO could be the ideal structure. If you would you like help setting up a CIO or understanding the steps involved in registering one with the Charity Commission, please contact our Corporate team via email corporate@stephens-scown.co.uk.