Views sought on a new legal form for charities

Finance | Ian Allsop | 10 Sep 2008

The Office of the Third Sector and the Charity Commission have launched a consultation on the draft details of what the new legal form for charities, the Charitable Incorporated Organisation (CIO), might look like and the rules it will have to follow.

Currently, most charities can only incorporate as a company limited by guarantee, meaning they are regulated by both the Charity Commission and Companies House. Originally proposed in the 2006 Charities Act, the CIO is designed specifically for charities and will be regulated solely by the Charity Commission, significantly reducing this regulatory burden.

The consultation seeks responses from those who will use the CIO model and those who will work with them, including grant funders, contractors, and suppliers, to try to ensure that the new legal form is effective and useful in practice.

Phil Hope, minister for the third sector (pictured), conceded the CIO wouldn’t be the best model for every charity. Because the CIO form “must command the confidence of the wider business community, there are more requirements for a CIO than for an unincorporated charity,” he said.

Dame Suzi Leather, chair of the Charity Commission, said: “We want the CIO to be an effective new option for charities and it’s vital we receive the views and comments of those who may adopt, or work with it, and we encourage sector professionals and funders alike to let us have their views.”

The consultation is available from http://www.cabinetoffice.gov.uk/third_sector/Consultations/current_consultations.aspx and the closing date for responses is 10 December 2008.

Directory: Charity Commission | Office of the Third Sector
Who's Who: Ian Allsop

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Penelope Blackwell
Director of fundraising
Chest, Heart & Stroke Scotland
17 Sep 2008

Will this apply in Scotland as well? Sounds an excellent idea.

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