Views Sought on New Legal Form for Charities

The Office of the Third Sector and the Charity Commission have published draft details of a new legal form for charities - the Charitable Incorporated Organisation (CIO) - including how it would be structured and the rules it will need to follow. Views are being sought from the charity sector and those who will do business with these new organisations.

Currently, most charities can only incorporate as a company limited by guarantee, meaning they are regulated by both the Charity Commission and Companies House.

The CIO is designed specifically for charities, and will be regulated solely by the Charity Commission, significantly reducing this regulatory burden.

The new CIO aims to bring greater administrative responsibilities than staying unincorporated, and these must be balanced against the need for sufficient control and transparency to ensure they are run effectively.

The consultation seeks responses from those who will use the CIO model and those who will work with them, including grant funders, contractors, and suppliers, ensuring the new legal form is effective and useful in practice.

For further information on the consultation please visit the Cabinet Office website at: www.cabinetoffice.gov.uk/third_sector/Consultations/current_consultations.aspx

The closing date for responses is 10th December 08.