What is a constitution in a charity?

A constitution is the governing document of your organisation that details your purposes and the rules and decision making structures. Once you have decided on your legal form you will need to write a governing document.

What is the purpose of a charity constitution?

Your charity’s governing document is a legal document. It works as a rulebook, setting out: its charitable purposes (‘objects’) what it can do to carry out its purposes (‘powers’), such as borrowing money.

What is the difference between a registered charity and a CIO?

A CIO is a charity that is just regulated by Charity Commission, rather than most charities that are set up as charitable companies which are regulated by Charity Commission and Companies House.

What is a CIO company?

A Charitable Incorporated Organisation (CIO) is a corporate form of business designed for (and only available to) charitable organisations in the United Kingdom. In contrast a CIO only needs to register and file accounts and returns with the Charity Commission.

Is a constitution legally binding?

The reality is that much of our constitution is written down and quite considerable amounts of it codified. Importantly, it is not a legally binding document, but provides one starting point for finding better ways to explain and examine our current constitution.

What should be included in a constitution?

What should I include in my Constitution? A constitution should provide the structure for an organization, describe its purpose, and define the duties and responsibilities of the officers and members. The objective is to draft a document that covers these topics in a simple, clear, and concise manner.

What should a charity constitution include?

A governing document must contain the following elements:

• Name: the registered name of the charity and, for trusts and unincorporated associations, the power to amend the name.
• Objects: the purpose of the charity, what the charity is set up to achieve and who’ll benefit from the charity’s work (beneficiaries)

What is a small charity constitution?

Suitable for small charities with an annual income under £5,000 that don’t own a building or employ people and do not intend to register with the Charity Commission. The charity shall be managed by a committee of trustees who are appointed at the Annual General Meeting (AGM) of the charity.

Can CIC accept donations?

A CIC will typically not be dependent on donations and fundraising as it will have a mix of income including contracts, trading income and grants. Whereas a charity is more likely to be dependent on grants, donations and fundraising for a larger proportion of its income.

Can a CIC convert to a charity?

From 1 September 2018 a CIC has been able to convert into a charitable incorporated organisation (CIO). Unlike a charitable company, CIOs only need register with the Charity Commission. They do not need to and, in fact, cannot apply to be registered with Companies House.

Is CTO higher than CIO?

The CIO is typically inward-looking. They manage relationships with internal customers (users) and oversee the organization’s IT infrastructure. The CTO is more outwardly focused. However, it is becoming more common to clearly separate the CIO and CTO positions at larger organizations and software companies.

What are the advantages of a CIO?

The CIO structure offers important benefits of having separate legal personality and trustee limited liability, and can be seen to be cheaper and easier to set up and administer than a company limited by guarantee.