What is a CIO? Charitable Incorporated Organisation Explained
What is a CIO (Charitable Incorporated Organisation)? The modern charity structure that gives trustees limited liability. Complete guide for UK charities.
A CIO (Charitable Incorporated Organisation) is the most popular structure for new UK charities. It combines the benefits of incorporation (limited liability) with the simplicity of charity-only regulation. Here's everything you need to know.
What is a CIO?
A CIO is a type of charity that:
- Has its own legal identity — it can enter contracts, hold property, and sue/be sued in its own name
- Gives trustees limited liability — personal assets are protected if things go wrong
- Is regulated only by the Charity Commission — no Companies House filing
- Must register with the Charity Commission regardless of income
CIO vs Other Charity Structures
| Feature | CIO | Charitable Company | Charitable Trust |
|---|---|---|---|
| Legal identity | Yes | Yes | No |
| Limited liability | Yes | Yes | No |
| Regulator(s) | CC only | CC + Companies House | CC only |
| Annual filing | Annual return (CC) | Annual return (CC) + accounts (CH) | Annual return (CC) |
| Setup cost | Free | £12 (CH) + free (CC) | Free |
Two Types of CIO
Foundation Model CIO
Trustees are the only members. They make all decisions. Best for:
- Most new charities
- Charities with a small, dedicated group running things
- Simpler governance
Association Model CIO
Has trustees AND a wider membership. Members can vote on major decisions (like constitutional changes and appointing trustees). Best for:
- Membership organisations (e.g., community groups, sports clubs)
- Charities that want democratic accountability
- Organisations where stakeholders should have a voice
Advantages of a CIO
- Limited liability — trustees' personal assets are protected
- Single regulator — less admin than a charitable company
- Legal personality — the charity can own property, sign leases, employ staff
- Recognised structure — banks, funders, and partners understand it
- Free to set up — no registration fee
Disadvantages of a CIO
- Must register — even with zero income (unlike unincorporated charities under £5,000)
- Charity Commission scrutiny — more reporting obligations than an unregistered trust
- Less familiar to some — CIOs have only existed since 2013, so some solicitors and accountants are less experienced
How to Set Up a CIO
See our full guide: How to Register a Charity in the UK. In brief:
- Choose Foundation or Association model
- Use the Charity Commission's model constitution
- Recruit 3+ trustees
- Apply online at gov.uk
- Wait 30-45 working days for approval
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