CLGs have a separate legal identity, and are liable for their own debts. Charitable Incorporated Organisations (CIO) are formed by founding members applying to the Charity Commission for registration and incorporation, with a constitution based on one of two model documents prepared by the Commission.
Is a CIO the same as a charitable company?
A CIO is a charity that is just regulated by Charity Commission, rather than most charities that are set up as charitable companies which are regulated by Charity Commission and Companies House.
What is the benefit of being a CIO?
The CIO structure offers important benefits of having separate legal personality and trustee limited liability, and can be seen to be cheaper and easier to set up and administer than a company limited by guarantee.
Is a CIO a company limited by guarantee?
– A CIO is one of four common types of charity, with the others being a trust, an unincorporated association and a charitable company, limited by guarantee.
What might be the disadvantages of having a CIO?
Centralization. One issue is that having a CIO would mean that information and technology operations are centralized, a big disadvantage for a company that has decentralized its operations. After all, each separate division or project will have its own needs, strengths and opportunities.
Can a CIO have directors?
CIO members still have key rights in law and under the Constitution and trustees are still responsible for managing the organisation (note that trustees for CIOs will only be trustees, they will not have the dual role of Company Director).
Can a CIO trade?
As a charity, your ability to trade is limited, because making money is not in itself a charitable purpose, even you are doing it to support your charitable activities. The risks of trading outside what is allowable are: if you do well and make a profit, that may be liable to tax.
What is the CIO of a company responsible for?
A chief information officer (CIO) is the company executive responsible for the management, implementation, and usability of information and computer technologies.
Should I set up a CIC or CIO?
Unlike a CIC, a CIO (or Charitable Incorporated Organisation) is a new legal structure introduced for non-profit organisations and charities. With a CIC, you need to apply to Companies House when registering. However, with a CIO, you only need to register with the Charity Commission.
How many trustees do you need for a CIO?
For good practice, a CIO should have at least three charity trustees. If the number of trustees falls below the minimum specified in the constitution, the provisions in clause 12(3) will enable the remaining charity trustees to appoint new trustees and prevent the CIO from becoming inoperable.
Can a CIO pay trustees?
Generally, charities can’t pay their trustees for simply being a trustee. Some charities do pay their trustees – they can only do so because it’s allowed by their governing document, by the Charity Commission or by the courts.
Can a CIO prepare receipts and payments accounts?
Less onerous requirements for preparing accounts: small CIOs can prepare receipts and payments accounts, unlike small companies. One annual return: charitable companies have to prepare an annual return under company law and (normally) a separate return under charity law.