CIO

This is a new corporate form of charity which will be registered with the Charity Commission and registration will confirm charitable status and limited liability.

CIOs will have a constitution, which may or may not include members, and will be a separate legal entity and so will be able to hold land, enter into contracts etc. in its own right. The charity will have ‘CIO’ after its name.

CIOs will have no relationship with Companies House and so are not ‘companies’.

Mechanisms will be in place to convert charitable companies, limited by guarantee, to CIOs. It is envisaged that for current charitable companies the process will be of re-registration and not cessation and new start up. However, for unincorporated charities forming CIO’s there will be a formal cessation of the old charity and a new CIO formed. It will not be mandatory for any charity, to become a CIO but it is envisaged that many will opt to change, potentially bringing all charities fully under Charity Commission regulations.

CIOs will be subject to the same regulatory, law and reporting requirements as other non-company charities

§  Annual Reports and Accounts in prescribed formats to be lodged with the Charity Commission within 10 months of the year end

§  Audit and Independent Examination thresholds based on Gross Asset/Gross Income tests

§  Receipts and Payments Accounts option if GI < £100k

Except that there will be no £25,000 deminimus exemption for filing accounts with the Charity Commission. All CIOs will have to submit accounts within 10 months of their year end.

CIO’s should be available by Spring 2011.