Small charity - CIO status

[shreddies]

Hallo. DH is loosely involved in a small charity that has trundled along quite happily for years. There is a new chair who wants to turn the charity into a CIO, but is not explaining why. Can anyone shed any light at all on what the implications would be? What possible advantage would it bring?

It's a really tiny charity with turnover of around £30k pa.

I'm not an expert but I think registering as a CIO provides the charity trustees more protection from liability if the charity gets any debt. Volunteer trustees are likely to approve this approach as it offers them more personal financial Protection. You need at least 3 unrelated trustees and an income over £5,500 per year

Yea as above. Liability is reduced. Lots of info on charity commission website

Thanks, I'll have a look. Is there any truth in the idea that funders wouldn't be keen?

No truth in the funding question at all

It depends on the funder really. I run a small charity (charity rather than CIO). Some of the grants we apply for explicitly exclude CIO or require additional documentation to consider them. Others don't.

I think if it's a limited company as well as a registered charity the trustees are protected financially anyway. So if it's a charitable company I don't think switching to being a CIO protects trustees additionally.
I'm no expert though - others may be able to confirm that.