Companies Limited by Guarantee (CLG) – (also often known as not for profit companies) that exist once an application made by founding members to Companies House is approved.
A Charitable Incorporated Organisation (CIO) – can only be charitable, and only exists if the Commission approves an application made by its founding members.
Trusts – are created by adopting a trust deed which declares that an initial asset (or amount of money) is held by trustees on behalf of beneficiaries.
Unincorporated Groups – are created by founding members adopting a constitution.
Other structures are available but cannot register as charities with the Charity Commission. Examples include educational organisations (such as universities and colleges), and registered societies (organisations registered with the Financial Conduct Authority). While the Clore Strategic Review of Governance Development Needs 2016/17 found that the overwhelming number of Arts Council England National Portfolio Organisations (NPOs) were CLGs, the Charity Commission says that the proportion of new arts organisations applying for CIO status is increasing.
Companies limited by shares, community interest companies, sole traders and legal partnerships cannot be charities.
This resource is aimed at supporting charities to ensure the proper procedures and policies are in place to manage the charity’s resources effectively and, where appropriate, to make changes to their charity. Published: by the Charity Commission of Northern Ireland, 2014.
Find out what being a charity trustee involves, if you can claim expenses and where to get help and advice. First published: May 2013, latest updates: May 2018.
A step by step guide to the processes of registering your organisation as a Limited Company.
Understanding and choosing a legal structure for your organisation.
An update from the Charities' Commission on tax and trading.
Extract from How to Run a Charity, published by ICSA, focusing on the legal aspect.
The good governance code for the charity sector.
To be used in conjunction with The Charity Governance Code, this is a practical tool kit acting as a checklist against which Trustees can note their progress, actions and their points for continuing improvement.
A social enterprise which supports charities.
A collection of some of the most important sample documents, templates and tools for trustee boards from the NCVO.
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