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The trustees are appointed rather than elected, and there is no wider membership. A company can be not-for-profit without being either a charity or a CIC, but it may be harder to prove and guarantee the not-for-profit status to interested parties such as supporters, investors or funders. Not-for-profit organisations choose a legal structure based on a variety of factors, including: Many community groups are run entirely by volunteers, to benefit their own members, improve their local neighbourhood, or run campaigns. Most charities adopt one of the following legal structures: Which structure is best depends on whether the organisation will have voting members,whether it will be incorporated, and how it will be funded. If an organisation meets these criteria it is, by definition, a charity, even if it is not registered with the Charity Commission. Things to consider when choosing a legal structure. A CIO only needs to file accounts with the Charity Commission. “Social enterprise” isn’t a legal structure – social enterprises can adopt different legal structures depending on their needs and the way they work.

1105835) and a company limited by guarantee in England and Wales (no. Guarantee / Incorporated Charitable Incorporated Organisations (CIOs) the governing document is a trust deed or a will. Charitable Incorporated Organisation (CIO) Incorporated; Always charitable; Association model has voting members, Foundation model does not have voting members. Organisations that make all or part of their income through grants and donations are usually controlled by a team of volunteers.

“Charity” is not a legal structure in and of itself. Being a registered charity gives an organisation recognition that it is run for the public good, and this can help with getting grant funding and other benefits available only to registered charities. Which structure is best depends on whether the organisation will have voting members, whether it will be incorporated, and whether it meets the legal requirements to be a charity. To apply for CIC status for an existing company, use application form CIC37. Some organisations (particularly companies) may have a very small number of members, while others may have a large membership. Charitable companies can convert directly by adopting a CIO constitution and completing an online application form. Establishing a charitable company involves registering with the Charity Commission as well as Companies House, and then submitting your annual report and accounts to both organisations annually. To set up an unincorporated association, your group simply needs to draw up a constitution, setting out the rules under which it will be run. A charitable trust is not incorporated, so it cannot enter into contracts or own property in its own right. Cooperative Societies must be based on the co-operative values of self-help, self-responsibility, democracy, equality, equity, and solidarity. The templates are applicable for reporting periods beginning or after 1 January 2015.

There are two types – the Association Model, which is controlled by members at the AGM who are not trustees, and the Foundation Model, in which only the trustees are members. However, we are a small charity, so if you are in a position to make a donation, it will help us to keep running this service into the future.

Registration of a new CIO takes up to 40 days.

All you need to do is write and agree a constitution. A charitable incorporated organisation, or CIO, is a new legal form for a charity. To register a new CIC, you have to apply to Companies House to register a company, and include with your application form CIC36, which you will use to describe how your company will benefit the community. Possible submission of Corporation Tax return CT600 with charity pages CT600E, Independent Examination or audit, as necessary. This includes Charitable Community Benefit Societies, which are regulated by the Financial Conduct Authority. An unincorporated organisation is, in legal terms, a collection of individuals. For more information on how to convert to a CIO structure see the Charity Commission guidance “Change your charity structure”. For more help, see our list of other organisations that provide information for social enterprises and cooperatives. To set up a trust your group must write and sign a trust deed, which must show that the organisation is legally charitable. If your group is charitable, you will need to register with the Charity Commission if your annual income is over £5,000 per year. For more information about responsibilities of charities, see our sheets Responsibilities of Registered Charities and Charity Reporting and Accounts. A Community Benefit Society can apply for a Statutory Asset Lock, which will allow it to guarantee its non-profit status. This means it can be not-for-profit, if all surplus income is reinvested back into the organisation.

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