We were recently delighted to work with Salisbury Stingrays, a community swimming club situated in Wiltshire, England, in their obtaining of charitable status as a Charitable Incorporated Organisation.
To protect their committee and members, more and more clubs are choosing to separate the legal identity of their club by becoming incorporated.
Want to find out what incorporation is all about? Check out our guide here.
Charitable Incorporated Organisations are, as the name suggests, organisations that offer the benefits of being incorporated and charitable status in one body. A CIO is a simple mechanism for a charity to trade although trading for a profit would still require a trading arm.
CIOs are regulated by one body – the Charities Commission – and therefore can be simpler to administer than clubs set up a company with charitable status. The latter would have obligations to both Companies House and the Charities Commission.
In order to register as a CIO, the objects must be exclusively charitable and meet the public benefit test.
If all of the club’s income is to come from gifts and grants then a CIO model may be appropriate. But it restricts fundraising if the club wanted to develop property or land that could be borrowed against.
The main advantages of a CIO are:
– They provide a separate legal entity for the club and offer members limited liability
– It may reduce administration in comparison to a charitable company.
Interested in registering your club as a CIO? Contact us.