Charitable incorporated organisations – making the switch?
Charities are already taking advantage of new eligibility rules allowing charitable companies to convert to charitable incorporated organisations (CIOs).
The conversion process is being introduced on a phased basis, starting with the smallest charities and working up to larger charities becoming eligible later this year. It comes after the Government passed legislation last November to enable charities with company structures and community interest companies to convert simply to CIOs, speeding up the process.
Any charity that wanted to convert to CIO status previously had to wind up their old organisation and start a new CIO.
The timeline for eligibility 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|
Michaela Johns says: “These changes are a long time coming and will be broadly welcomed in the sector as it reduces some of the red tape.”
“Becoming a CIO offers the opportunity to reduce long-term administrative burden.”
For more information on converting and the process involved, contact Michaela Johns on 023 8046 1256