Conversion of charitable companies to CIOs
On 7 December 2017, the Charities Act 2011 (Commencement No.3) Order 2017 (SI 2017/1230) was implemented, which means that from 1 January 2018 there will be mechanisms in place for an existing charitable company, charitable community benefit society or community interest company to convert into a charitable incorporated organisation (CIO).
The Charity Commission has published a phased implementation timetable and will start accepting applications for conversion from 1 January 2018 for charities with annual income of less than £12,500. The timetable is as follows:
|1 January 2018||Less than £12,500|
|1 March 2018||Between £12,500 and £25,000|
|1 May 2018||Between £25,000 and £100,000|
|1 June 2018||Between £100,000 and £250,000|
|1 July 2018||Between £250,000 and £500,000|
|1 August 2018||Greater than £500,000|
Any existing charitable companies, charitable community benefit societies or community interest companies interested in converting to a CIO should consider the possible advantages and disadvantages from a change in structure. These will include the potential benefits of removal of dual regulation and the likely costs and administrative burden of the change itself.
The Charity Commission has also updated its detailed guidance on changing your charity structure in line with these changes.