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Commentary

25 Charitable incorporated organisation

CHARITIES AND CHARITABLE GIVING vol 6(2)
| Commentary

25 Charitable incorporated organisation

| Commentary

25 Charitable incorporated organisation

The charitable incorporated organisation (CIO) is the only legal structure created exclusively as a framework for charities. It has become popular for new charities, especially those of small to medium size, and to replace unincorporated charities. Most CIOs use one of the two forms of model constitution prescribed by the Charity Commission1.

The charitable company limited by guarantee has a particular advantage over the simple trust in circumstances where the trustees might be exposed to third-party liability since the company is a legal entity separate from its members and directors, and the charity trustees2 as the directors

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