Charities seeking incorporated status in Scotland will have to change their name and apply for charitable status again, under a new process announced by OSCR, the Scottish charity regulator.
OSCR currently allows two routes for unincorporated charities to change their status. It has said that it will close down its current “conversion” process from early November onwards, and allow charities to incorporate only if they go through a more rigorous process which involves seeking consent to wind up their current charity.
“In an attempt to make this process as simple as possible for charities, we had offered two options towards incorporation,” OSCR said in a statement. “One of these was, on the surface, viewed by some as a ‘conversion’ process. The hope had been that this process would make it simpler for charities. However, in the end the process led to difficulties.”
OSCR said it had made it difficult for charities to deal with other regulators and banks, and had complicated issues for other regulators. It has also made OSCR’s own internal processes “confusing and cumbersome”, the regulator said.
Charities wishing to incorporate must apply for status for a new charity, and wind up the existing charity, OSCR said.
OSCR said it was pressing ahead despite objections from within the sector.
“We have heard some serious concerns about the fact that charities will have to change their name and charity number during the process because we cannot have two charities with the same name on the register at any one time,” the regulator’s statement said. “However, it will be possible for an organisation who is becoming a SCIO to continue having a very similar name.”
OSCR said it would produce new guidance on the incorporation process, which will be published in early 2017.
