A Charitable Incorporated Organisation (CIO) is a corporate form of business designed for charitable organizations in England and Wales. It is a new legal structure available for charities or charitable groups that wish to be incorporated, and it can be picked instead of registering as a charity and then as a company. CIOs have been designed specifically for charitable groups, allowing them to register just once with the Charity Commission as an incorporated form of charity which is not a company. This cuts out the need to register with and report to Companies House. Some key features of a CIO include:
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Incorporation: A CIO is an incorporated structure designed for charities. You create a CIO by registering with the Charity Commission. You do not need to register with Companies House.
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Limited Liability: Trustees have limited or no liability for CIO debts or liabilities.
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Ease of Set-Up: CIOs are suitable for small to medium-sized charities and are relatively easy to set up.
CIOs have two different types of membership: closed and open. Under the closed membership model, the voting members and charity trustees are one and the same, which is ideal if the CIO is to be run by a small group of individuals who are responsible for making key decisions. The open membership model has a wider membership than the closed membership, including members who are not trustees.
