Kernow Soroptimists become a Charitable Incorporated Organisation (CIO) May 2025

Kernow Soroptimists are very proud to be SIGBI’s first CIO(Charitable Incorporated Organisation).  We were registered with the Charity Commission on 28th May 2025. We would like to thank SIGBI Governance Director Giselle for her excellent support with our application and constitution and the SIGBI Directors for working with us at the last minute to tie up some procedural loose ends!!

Before jumping straight into the benefits and hurdles, we spent time as a club, making sure that everyone understood the meaning of ‘CIO’.  A CIO is a ‘Charitable Incorporated Organisation’. This legal structure is designed specifically for non-profit organisations in the UK. Introduced by the Charities Act 2011, a CIO combines the benefits of having a separate legal identity, like a company, with the simplicity of a traditional unincorporated charity.

There are many benefits of becoming a CIO, not least the liability advantages. If a club becomes a corporate body (incorporated), it is seen in the eyes of the law as a “person” in its own right.  A CIO therefore creates a separate legal entity and has the benefits of a corporate identity, so it can hold property and enter into contracts in its own right. Its trustees and members will not be personally liable for what it does and for the debts of the CIO as long as the decisions are reasonable and lawful. At the moment, for most clubs, as unincorporated organisations, members have to hold contracts and property directly as individual people, so contracts and agreements are made personally by each individual member, rather than by a corporate body. This means if things go wrong, the club members can be sued individually.

CIO status offers limited liability – this means that in the event of liquidation or litigation any debts will be paid out of the organisation’s funds and once these have been exhausted trustees are not personally liable for any further funds. However, at the moment as unincorporated associations we have personal unlimited liability. You can have indemnity insurance, but it may not be sufficient for litigation. This CIO status protection provides peace of mind and encourages competent people to take up trusteeship roles without fear of personal financial loss.

A CIO offers a modern legal structure specifically for charities, regardless of income. It only has one regulator; The Charities Commission, rather than the more complicated structure of being a registered charity and a company limited by guarantee, where charities are regulated by The Charities Commission and Companies’ House. As a club that focuses largely on advocacy and direct programme action rather than just fundraising we were pleased to see the ‘regardless of income’ stipulation. 

This streamlined approach will simplify administrative processes, reduce duplication in reporting and decrease the risk of non-compliance. This will free up more time and resources to focus on our mission and activities.

As a registered charity, this status demonstrates that we are running to accepted standards. This invokes confidence for stakeholders and ensures sustainability and underlines our long term commitment. It also attracts funding/donations. 

There are two types of Charitable Incorporated Organisation (CIO): Foundation CIOs and Association CIOs. A Foundation CIO is governed solely by its trustees, making it a straightforward option for charities where decisions are managed by a small group without wider member involvement.  In contrast, and in keeping with our club’s way of operating, an Association CIO includes a broader membership. Members have the right to vote on key matters such as trustee appointments or changes to the organisation’s rules. This approach is ideal for charities that aim to engage a larger group in decision-making and so is ideal for our club.