How to change an unincorporated association or trust to a charitable company or CIO, plus other types of conversion.

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

Changing to a different charitable structure usually involves:

1. setting up a new charity in the new structure, with purposes that are the same as or similar enough to those of the original charity
2. transferring your original charity’s assets and liabilities to the new charity, then
3. closing your original charity

This can be complex, particularly if your charity has assets which are permanent endowment and you should take appropriate professional advice. For example, on the transferring of assets, contracts or liabilities, or where your charity has permanent endowment.

Read Charity types: how to choose a structure (CC22a) for more information on the advantages and disadvantages of the different types of charity structure.

There is useful checklist available here

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