Office of the Third Sector Homepage
Last updated: 23 November 2008
The Charitable Incorporated Organisation (CIO) is a new legal form for charities - the first incorporated legal form designed specifically with the needs of charities in mind. It will be available only to charities and will add to the existing range of forms that charities can use.
The Office of the Third Sector (OTS) and the Charity Commission are seeking responses to this consultation on the detailed legal framework for CIOs from those who will use the CIO model and those who will work with CIOs.
Establishing a new corporate form designed specifically for charities was a recommendation of the Strategy Unit which the Government accepted. Provision was made for the CIO in the Charities Act 2006.
This is a joint consultation by the OTS (which is part of the Cabinet Office) and the Charity Commission on the Secondary legislation that is needed to complete the legal framework for the CIO. The consultation is not about the CIO provisions in the Charities Act 2006.
The consultation document below explains the content of the draft Secondary legislation and discusses some of the issues on which we would particularly welcome comments.
Charities who want to enjoy the benefits of incorporation must currently be regulated by both Companies House and the Charity Commission. The CIO will only be regulated by the Charity Commission, ensuring a considerable reduction in the regulatory burden.
As an incorporated body, one of the main benefits of the CIO is that members are personally safeguarded from the financial liabilities it incurs. However, in return for this protection there are a number of additional responsibilities for the CIO, its trustees and members. These include maintaining a register of trustees and members, and making that and other information about the CIO publicly available.
Whilst the CIO will bring advantages for some, it will also bring new obligations for others and will not be the right option for all charities.
We have asked for responses to this consultation be sent to the Office of the Third Sector but as this is a joint consultation they will be shared with the Charity Commission.
There are a number of issues on which we would welcome your views in order to help us complete the legislative framework, including:
These and a number of other issues on which we would welcome your views are set out in more detail in the consultation document.
The Office of the Third Sector and the Charity Commission jointly ran four half day consultation events in London and Leeds on the 15th and 21st October on the CIO.
These events aimed to provide the charity sector and their professional advisors further opportunity to find out more about the proposed legal form, discuss issues and contribute their views before final decisions are made on completing the detailed legal framework for the CIO. The slide presentations from the events are available below:
A short summary capturing the feedback at the events, together with questions and answers will be available on this page in the next few weeks.
For questions on the consultation, or to respond to the consultation, please contact:
Helen Morgan
35 Great Smith Street, London, SW1P 3BQ
Phone: 0207 276 6031
Email address: cioconsultation@cabinet-office.x.gsi.gov.uk
The consultation closes on 10 December 2008