Good news for new charities

An expert in charity law is alerting good causes to a new business structure introduced by the Charity Commission that can bring many benefits.

David Sewell, partner in the corporate team at Napthens solicitors and a charity law specialist, advises that new charities being established now, with a turnover of more than £5,000, should consider forming a CIO.

He said: “It is important for charities to seek the best business structure allowing them to operate as efficiently as possible.

“It was hoped that regulations might allow for existing trusts and companies limited by guarantee to simply convert directly to CIOs but this is not possible at the moment. “However, we expect that many trusts will wish to form a new CIO and then transfer their assets and operations to it. Charities which may benefit in this way should contact their advisers for help.”