Are CIOs becoming the default structure for forward-thinking charities

We are seeing a marked increase in both existing and new clients choosing to establish a Charitable Incorporated Organisation (CIO), either when setting up a new charity or “converting” from longstanding structures such as charitable trusts.

The CIO structure, introduced on 2 January 2013, was designed in response to sector calls for an incorporated form that avoids dual regulation under both company law and charity law (as required by Charitable Companies). A CIO can enter contracts, employ staff and hold property in its own name — removing the need for trustees to do so personally.

While CIOs offer significant advantages, there remain circumstances where alternative structures are more suitable. For example, charities that regularly borrow against fixed charges or debentures may find a company limited by guarantee is more appropriate. As always, selecting the right structure depends on the charity’s purpose, operational model and risk profile.

Though statistics detailing the structures chosen by newly formed charities since the introduction of CIOs in 2013 remain limited, indications from leading sector bodies suggest that CIOs continue to grow in popularity. It is reported that more than 12,500 CIOs were registered in the first five years after the structure was introduced, and the Charity Commission has continued to report strong uptake in recent years.

Our tier 1 ranked charities team sees several recurring drivers behind charities favouring CIO incorporation:

• Reduced regulatory burden and cost-efficiency: Unlike charitable companies, CIOs are regulated exclusively by the Charity Commission. This avoids dual filing requirements and can streamline governance, reduce administration and lower long‑term compliance costs.
• Growing donor focus on operational efficiency: Donors and institutional funders increasingly expect charities to demonstrate efficient use of resources. A structure that eliminates duplicated regulatory processes can help charities present stronger governance credentials and value for money.
• Enhanced protection for trustees: CIO trustees benefit from limited liability, unlike trustees of charitable trusts or members of unincorporated associations. This distinction is becoming a major factor in attracting and retaining experienced, and even first‑time trustees who may otherwise be hesitant to accept personal exposure.
• The Charity Commission’s model CIO constitutions utilise accessible and clear language for lay-trustees.

Cripps act for some of the UK’s oldest charities whilst also advising new and pioneering charitable organisations. Across this spectrum, we are seeing a shared priority: maximising charitable impact and seeking structures that best support each charity’s purpose. Where a structural change can unlock greater operational efficiency and strengthen governance, charities are instructing us to support their transition to a CIO structure.

How we can help

If you are unsure whether your existing charity structure is well‑suited to future growth or long‑term sustainability, our charities team can provide clear and pragmatic advice.