CIO (Charitable Incorporated Organisation)

[p.turner@wycombealmshouses.co.uk]

The Trustees are looking at updating our Trust deed and at the same time, merging two Almshouses charities.

The solicitor has suggested we consider setting up a CIO. The CIO would be the sole Trustee of the ‘new’ Almshouses charity and the Trustees would be Trustees of the CIO.

Has anyone else had this suggestion – any comments would be appreciated.

Thank you

[Victoria Hill]

Hi. Our “trustee” is a limited company and our “trustees” are all directors of that limited company. We file charitable accounts for the almshosues and dormant accounts for the limited company. Its all explained in the accounts. Its straight forward to operate. The only time I had an issue was with HSBC who, years after it was implemented, suddenly decided they didn’t like it. In the end we changed banks and it has been fine since then.

[lana_sh]

Hello,
Our organisation moved on from Trust to the CIO in 2019. It was pretty straight forward transition for us.
Your next legal form should be the one that fits your organisational needs. For us CIO was the best option. The CIO members are the Trustees of the Charity with limited liabilities. the CIO reports to Charity Commission only.

If you become a company, there will be limited liabilities too, but it will involve more reporting. You will have to register with Charity Commission and Companies House and, of course, report to both based on your income/ employees.

I am happy to have a chat if this helps. robertthompsoncharities@gmail.com

Kind Regards,
Lana

[lwinrow]

Our organisation is also in the process of adopting CIO status and transferring assets from the registered charity name. We have instructed a firm of solicitors that specialise in the charity sector for support.

[Sue Missin]

A number of the Almshouse Consortium members have over time changed to CIO. At the time it was not a reason for doing so but have since realised that having CIO status has helped to recruit new Trustees or to retain them especially when considering taking on a building or major repairs project that could be expensive. Trustees would not wish to be involved if they were personally liable!

[Charles Porter]

We converted to a CIO before joining the Almshouse Consortium and commencing our current building project for 6 new almshouse bungalows. It was pretty straighforward although we did have a hitch when it became apparent that the transfer of our freehold land was more complicated than we were initially advised.

[William Clemmey]

We converted to becoming a CIO in 2022 (see previous posting on this forum)
Very happy to supply copies of our CIO constitution and a checklist for incorporation and other materials such as TUPE of staff, the need for a new bank account, if you a re a Registered Provider the need to reregister and obtain permission from Homes England to transfer the properties to the CIO if you have received a grant from them or their predecessors;

We can provide an example of a transfer deed -transferring all of the assets and liabilities from the old charity to the CIO. You will also need to get Section 105 dispensation to Charity Commission due to the conflict of interest since most of your trustees will be the same

Its well worth doing and will attract more trustees since they gain the limited liability. A CIO is much better than a Company limited by Guarantee due to not having to report to both Companies House and the Charity Commission

Happy to supply copies of documents or chat
William Clemmey 07922508913
chiefofficer@municipal-charities.org.uk

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