CIO Grants: Funding a Charitable Incorporated Organisation

The charitable incorporated organisation, or CIO, is a legal structure designed for charities in England and Wales. For grant funding it is a strong choice: a CIO is a registered charity, so it can apply to the wide range of funders that support charities, and it has its own legal identity, which matters for staff, contracts and buildings. This guide explains how funders see CIOs and how to get your first grants.

What a CIO is

The Charity Commission describes a CIO as a corporate structure for charities. Being a corporate body means the CIO can do things in its own name, such as:

• employing paid staff
• delivering services under contracts
• entering into commercial contracts
• owning or leasing land and buildings

If a charity is a corporate body, its trustees are generally not personally liable for what it does. That is a big difference from an unincorporated association, where the trustees can be personally liable and the group cannot sign contracts in its own name.

A CIO only has to register with the Charity Commission, not with Companies House. That makes it simpler to run than a charitable company, which must register with both.

Foundation or association CIO

The Commission offers two model constitutions:

• Foundation CIO: the only members are the trustees. This suits charities run by a small board.
• Association CIO: there is a wider voting membership, as well as the trustees. This suits groups where members elect the board at an annual meeting.

You can change from one model to the other later by amending the constitution. Funders rarely have a view on which model you use. What they look at is whether your board is active and your money is well controlled.

CIO or charitable company?

The other common incorporated structure for a charity is a charitable company, usually limited by guarantee. The Charity Commission explains that a charitable company must register with both the Commission (if eligible) and Companies House, and must provide detailed information on its finances and activities each year. Like a CIO, it cannot distribute surpluses to members and can only use its assets for its charitable purposes.

For grant funding, the two are treated in much the same way, because both are registered charities. The practical difference is administration: a CIO deals with one regulator, while a charitable company deals with two. If you already run a charitable company, there is usually no funding reason to convert.

CIO registration and what it means for funding

In England and Wales, a charity must register with the Charity Commission if its income is at least £5,000 a year. A CIO is different: it must register whatever its income, and it only legally comes into existence once it is registered. A CIO must also send its accounts and annual return to the Commission each year, regardless of its income.

For funders, that is useful. Your CIO appears on the public register of charities with its trustees, income and spending, which gives funders confidence from day one. But it also means you must plan for registration time before you can apply for grants as a CIO.

Which funders accept CIOs

Most funders that support charities accept CIOs. For example:

• National Lottery Awards for All England lists CIOs among the organisations that can apply for £300 to £20,000. See the Awards for All England listing.
• Garfield Weston Foundation funds UK registered charities and CIOs, alongside exempt and excepted charities. See our Garfield Weston guide.
• Community foundations generally accept CIOs, as they accept a wide range of not-for-profit groups. See our community foundation grants guide.

Our charity grants explainer lists other funders that support charities, and you can browse open grants for charities on GrantMatch.

The new CIO problem: no accounts yet

The biggest hurdle for a new CIO is track record. Some funders need at least one year of accounts. Garfield Weston, for example, asks charities without accounts to wait until they have them, because finances are an important part of its decisions.

If you are a new CIO:

• Start with funders that welcome new organisations. National Lottery Awards for All England says organisations less than 15 months old can apply, and asks for a bank statement and other details instead.
• Use your community foundation. Local funders know new groups and often fund first projects.
• Show your plans instead of your history. A simple budget for your first year, a clear statement of need and the experience of your trustees all help. See our statement of need guide and grant budget template guide.
• If you are converting from an older structure, tell funders. The history of the unincorporated charity or group that came before the CIO counts as track record.

What funders will ask a CIO for

Expect to provide:

• your charity registration number
• your constitution (the Charity Commission model, completed and dated)
• your latest accounts or annual return, once you have them
• a bank statement in the CIO's name
• details of at least two unrelated trustees, often with home addresses and dates of birth for identity checks
• policies such as safeguarding and equality, if relevant to your work

Awards for All England, for example, needs at least 2 board or committee members who are not related, and it defines related to include partners, people living at the same address and blood relatives.

Converting to a CIO

Many unincorporated charities convert to a CIO when they start employing staff, taking on a lease or managing larger grants. The Commission has guidance on changing your charity's structure. A few points matter for funding:

• Check your current grant terms. A grant is made to a specific organisation, so talk to your funders early about moving it to the new CIO.
• Your new CIO will have its own registration number and bank account, so update your funder profiles and payment details.
• Keep your history. Funders will want to see the accounts of the old charity alongside the new CIO's.

CIOs in Scotland and Northern Ireland

In Scotland, the equivalent structure is the Scottish Charitable Incorporated Organisation (SCIO), registered with the Office of the Scottish Charity Regulator (OSCR). A SCIO is a registered Scottish charity, so funders that support charities in Scotland can usually consider it. Northern Ireland has its own charity regulator, the Charity Commission for Northern Ireland, and its own rules. Check with the regulator in your nation before choosing a structure. You can browse grants in Scotland and grants in Northern Ireland on GrantMatch.

CIO or CIC?

Some founders weigh up a CIO against a community interest company. For grants, a CIO usually has the edge, because some large trusts fund registered charities only. Garfield Weston, for example, funds CIOs but not CICs. A CIC can be a better fit if you plan to trade heavily or need investment. Our CIC limited by shares or guarantee guide and eligibility by organisation type guide explain the trade-offs.

Find grants for your CIO

GrantMatch lists open grants that CIOs can apply for, from national funders to local trusts. Create a free profile, choose charity as your organisation type, and we will match you with grants and alert you when new rounds open.