Search site
Contact our offices
Make an enquiry
Community Interest Companies (CICs) now have the option of converting into a Charitable Incorporated Structure (CIO). This offers potential benefits for charitable organisations, including more relaxed reporting and compliance requirements.
At Glanvilles, we have a team of charity law experts with experience advising charities of all sizes across a range of sectors. If you are thinking of converting a charity to CIO status, we can discuss the implications and ensure that the correct process is followed.
We have the expertise to give you the guidance and representation necessary to put the right foundation in place for your organisation. This is a complex area of law and our team will work with you to ensure that all aspects of the conversion, such as pension implications and funding issues, are dealt with appropriately.
As well as exceptional legal expertise in the charities sector, our team provides an outstanding service. We will make sure that you have a solicitor with the right level of expertise for your needs and that you are able to speak to us as needed during the conversion process.
You can contact our experienced charity conversion solicitors in West Sussex and Hampshire at your local branch in Chichester, Fareham, Havant or Petworth.
Alternatively, you can fill in our online enquiry form and a member of our team will be in touch shortly.
Our charities lawyers provide a full service for converting charities, including:
There are four main charity structures in the UK:
A charitable conversion is the changing of the existing charity structure.
Converting a charitable company to a Charitable Incorporated Organisation allows a charity to keep a similar structure to a company but without the need to follow company legislation as closely.
Looking at a Charitable Incorporated Organisation vs a charity set up as a company, the main benefit is a reduction in paperwork.
After conversion to a CIO, a charity will no longer need to file accounts with Companies House or go through the lengthy director verification process as it will be solely regulated by the Charity Commissioner.
A simpler method of accounting can be used, rather than dealing with matters on the basis of accruals, as required by Companies House.
The personal financial liability of those involved with the charity is also reduced under the CIO format, as trustees will not be personally liable for any debts that the charity has.
Because the structure is a separate legal entity, it is still able to enter into contracts and own property in its name, rather than the names of trustees. This means that the benefits of a company structure are retained but with less bureaucracy and a lower risk to trustees.
To convert a CIC to a charity CIO, you need to comply with the eligibility criteria and then apply to the Charity Commission (the Commission) to convert.
This includes providing the Commission with a new constitution and two resolutions passed by members:
A declaration that the trustees are eligible is also required.
If the Commission agrees to the conversion, the CIC will be removed from the Companies House register.
As well as the work carried out by the Commission, you will also need to deal with the transfer of paperwork, contracts, employees, pensions, property and other matters into the name of the new CIO. It is important that the correct procedures are followed in dealing with these issues to avoid legal complications in the future.
Our team routinely represent charities in dealing with the conversion process to a CIO and we can work with your organisation to ensure all matters are dealt with comprehensively.
If you have a company that is not currently a charity, you may want to convert it into a Community Interest Company. This includes dealing with Companies House, HMRC and the Office of the Regulator of Community Interest Companies.
We can advise you on the process, which involves providing articles of association, a company conversion declaration and a resolution agreeing to the conversion. We will also work with you to establish that this is the best option for your organisation and discuss the implications of conversion.
As well as looking at CIO vs CIC, it is also possible to change the structure of a charity or to convert most types of company to a charitable structure, subject to eligibility. We can discuss your needs and what you want to achieve, ensuring that you have the right foundation for your charity and that you are able to carry out the activities you want.
Unincorporated organisations cannot be converted, and you would need to start a charity registration from scratch.
When converting a company, you will need to keep to the same structure. For example, if your company is limited by guarantee, then when you convert, your CIC will also need to be limited by guarantee.
The main steps in the conversion process from CIC to CIO are as follows:
Our charities team has worked with a range of organisations to convert them to CIO status, including advice on dealing with ancillary issues such as employees, property and pensions and discussing the implications of a Charitable Incorporated Organisation vs a charity run as a charity company.
We have the attention to detail needed to ensure that the conversion goes smoothly and that a sound legal foundation is put in place for the future. We will ensure that your organisation has the ability to carry out the activities it intends and we can also advise on ongoing issues such as compliance and financial reporting.
We will take the time to get to know your organisation to ensure that the advice we offer takes into account both your current situation and the way in which you hope to operate in the future.
When you use our services, we promise:
You can contact our experienced charity conversion solicitors in West Sussex and Hampshire at your local branch in Chichester, Fareham, Havant or Petworth.
Alternatively, you can fill in our online enquiry form and a member of our team will be in touch shortly.
Send us a message
Fill in our form and we'll get back to you as soon as possible