Views are being sought by the Cabinet Office as part of a consultation on the process for converting charitable companies and community interest companies (CICs) into charitable incorporated organisations (CIOs).
The CIO legal structure is relatively new and converting to a CIO could be of benefit to CICs and charitable companies as it would reduce their regulatory burden and administrative costs. It is estimated that between 7,000 and 12,000 existing CICs and charitable companies will choose to convert to the CIO structure over the next ten years, reducing their accountancy and scrutiny costs by almost £1,000 a year each.
Applications for conversion to CIOs will be dealt with in stages, starting with organisations with an annual income of more than £500,000, which are expected to be able to apply from 1st October 2016. Responses to the consultation are required by Friday 10th June 2016.