The process for conversion is broadly as follows. A new CIO will need to be registered at the Charity Commission, which will have a new charity number. The original charity will need to formally decide to transfer its business to the new CIO. It will also need to identify the assets, liabilities and commitments that will be transferring and take steps to ensure these are transferred properly. Once this process is complete the original charity will need to be wound up and the Charity Commission notified of this. Various other parties may need to be notified, including HMRC, banks, and funders.

Our fees for assisting with this process start from £1200 + VAT for a simple conversion, and this would include us:

  • Applying for Charity Commission consent, which will usually be required
  • Drafting a constitution for the CIO
  • Registering the new CIO with the Charity Commission
  • Drafting a simple Transfer Agreement to transfer all of the old charity’s business to the new CIO.

It may be necessary to undertake additional work for a successful conversion, for instance dealing with the transfer of land or complex assets or liabilities (e.g. permanent endowment, pensions) or the transfer of employees. Our overall fee would therefore depend on the particulars of your charity and how much the trustees would like us to be involved in the different steps of the process. For this reason our approach is to first meet with you and discuss the particulars of your charity and your options, for which we charge an initial fee of £150 + VAT. We would then be able to suggest a realistic quote for assisting you with however much of the process as you prefer, and if you instructed us to proceed we would waive the fee for our initial meeting.

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