We reported recently that the new Charitable Incorporated Organisation (CIO) structure was finally up and running after seven years of planning and legislation. It gives charity trustees the liability protection of being a company, without having to register seperately with Companies House.
An article in the Gardian highlights a couple of problems which have cropped up – it can take a month or more to register, which is a lot longer than the Companies House process. This could be a problem if, for example you wanted to set up a new organisation to respond quickly to a particular isuues. More worringly, it does not allow for mortgages to be properly supported, so groups might be unable to take out loans on land or buildings. Given that charities with capital schemes are one of the key target groups for this structure, this is a worry.
That’s what you get for rushing into things.
The full article is here: