Charitable Incorporated Organisations are regulated by the Charities Commission for charity trading and income from gifts and grants.
Charitable incorporated organisations offer the benefits of being incorporated and charitable status, and the objective must be exclusively charitable and meet the public benefit test. The charity can trade, although trading for a profit would require a trading arm.
CIOs are regulated by the Charities Commission.
Advantages
- Tax relief on charitable expenditure including trading profits, rental income.
- You'll get tax benefits if you sell an asset or buy property.
- Clubs get 80% relief from business rates.
- Charities often enjoy considerable support from funders and the public.
- You can claim Gift Aid on donations.
- Charities can run certain fundraising activities that may be banned or require a licence for non-charities.
Disadvantages
- Permanent status – once registered, a club cannot revert to being non-charitable
- Administrative responsibilities – ongoing compliance with Charity Commission regulations and reporting requirements can require time and resources
Things to think about
- Selecting trustees who'll be responsible for understanding the legal requirements and operational aspects of the charity.
- Considering your organisation's name, whether it's available and meets the government rules.
- Decide on, and write out, your organisation's purpose and rules – this'll help you create a governing document which you will need upon application.
Getting charitable status
Becoming a registered charity can bring significant benefits to your club — but it also comes with specific legal responsibilities and reporting requirements.
Most clubs can apply for charitable status, including those structured as:
- Unincorporated associations
- Companies limited by guarantee
- Community benefit societies
However, Community Interest Companies (CICs) and non-charitable community benefit societies are not eligible. These structures are designed to generate profit to support wider community objectives and are regulated differently.
Note: If your club is set up as a Charitable Incorporated Organisation (CIO), it is required to be a charity by default.
Setting up as a charity
To register as a charity, your club must:
- Have a purpose that is exclusively charitable
- Operate for the public benefit
- Ensure its constitution reflects charitable aims — you may need to revise your governing document accordingly
If your club has an annual income over £5,000, it must register with the Charity Commission.
(Exception: Charitable community benefit societies register with the FCA and receive charitable tax status through HMRC.)
If your club plans to trade for profit — such as selling merchandise, tickets, or refreshments — you may need to set up a separate trading subsidiary to stay within charity regulations.