With so many acronyms these days, clients are often confused about what different terms mean. In this issue we are giving the quick once over to CIO’s.
Currently many charities are company’s limited by guarantee and registered charities. This gives the trustees the benefits of being a company, such as limited liability, but also comes with the dual compliance requirements of both the Companies Act and the Charities Act.
The Charitable Incorporated Organisation (CIO) is a new legal structure that has been created in response to charities requesting a legal form that gives the benefit of a company without these dual regulations. Essentially a CIO will be approved and regulated by the Charity Commission alone.
The Charity Commission has now published the two models that will be available for use (subject to change). These are the Foundation Model where trustees and members are one and the same and the Association Model where the membership is wider than just the trustees.
There is still no definitive timetable for the implementation of CIO’s as final regulations still require parliamentary time.
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