By Nick Gabay, Partner. Contact Thomson Snell and Passmore 01892 510000.
1st October 2013 saw the latest phase of Charitable Incorporated Organisations (CIO) introduced.
It is now possible for an existing unincorporated charity with an annual income of between £5,000 and £25,000 to set up a CIO and transfer any assets it has to it.
When CIOs were first introduced in March 2013 the Charities Commission only allowed existing charities with an annual income of more than £250,000 to set up as CIOs. Throughout the year the threshold has decreased. The Charities Commission expects that by January 2014 unincorporated charities with an existing annual income of less than £5,000 will be able to set up as a CIO.
CIOs are legal structures designed specifically for charities. The significant advantages of being a CIO is that a CIO need only register with the Charities Commission, there are less filing and reporting requirements, the organisation will enjoy the benefits of having a separate legal personality and liability will be limited.
Please feel free to contact us if you require further information or advice on incorporating as a CIO.