A CIO is a type of incorporated charity, meaning it has its own legal identity, separate from its members and trustees, which protects them from personal liability for the charity’s debts or obligations. CIOs can enter into contracts, own property, and sue or be sued in their own name, providing a straightforward governance framework that is tailored for charitable activities. This structure is particularly beneficial for small to medium-sized charities, as it simplifies administrative requirements and reduces compliance burdens compared to traditional charitable structures.
Charitable Incorporated Organisation Example
For example, a local animal rescue organization may register as a CIO, allowing it to fundraise, own its shelter building, and engage volunteers, all while ensuring that the personal assets of its trustees are protected in case of any legal or financial issues.