When to change charity structure

Changing to a different charitable structure usually involves setting up a new charity, transferring your original charity’s assets and liabilities to it then closing your original charity.

Your charity’s legal structure sets out what type your charity is. There are four common types of charity structure:

• charitable incorporated organisation (CIO) – there are 2 structures; association CIO and foundation CIO
• charitable company (limited by guarantee)
• unincorporated association
• trust

Your charity’s legal structure determines:

• who will run it and whether it will have a wider membership
• whether it can enter into contracts or employ staff in its own name
• whether its trustees are personally liable for what it does

A “Changing Charity Structure Checklist” can be found here