Cable Forum - View Single Post - Looking at becoming a trustee for a charity

**Chris** · 23-07-2021, 11:34

What form of charitable status does it have? Is it a charitable incorporated organisation (CIO) or not?

In a simple charity structure the trustees are personally liable for the liabilities of the charity. In theory this leaves you on the hook if the organisation does something it then gets sued for, or runs up debts. That’s not to say you shouldn’t do it, but they are some of the obligations you’re taking on. CIO status allows a charity to operate with limited liability, like a business. It makes the charity into a corporate entity which is liable for itself. Trustees are not personally liable for its debts or actions in this case.

I should add, as churches have charitable status, I have been a trustee of both CIO and non CIO organisations and apart from a few end-of-year paperwork differences there’s no day to day difference, just the reassurance that as a trustee you’re more protected in a CIO charity than a non-CIO one. Unless you think the way the Men’s Shed is particularly recklessly operated then becoming a trustee of it shouldn’t concern you. As a trustee you do of course then get some input into how it’s run.

23-07-2021, 11:34	#2
Chris Trollsplatter Cable Forum Team Join Date: Jun 2003 Location: North of Watford Services: Humane elimination of all common Internet pests Posts: 36,925	Re: Looking at becoming a trustee for a charity What form of charitable status does it have? Is it a charitable incorporated organisation (CIO) or not? In a simple charity structure the trustees are personally liable for the liabilities of the charity. In theory this leaves you on the hook if the organisation does something it then gets sued for, or runs up debts. That’s not to say you shouldn’t do it, but they are some of the obligations you’re taking on. CIO status allows a charity to operate with limited liability, like a business. It makes the charity into a corporate entity which is liable for itself. Trustees are not personally liable for its debts or actions in this case. I should add, as churches have charitable status, I have been a trustee of both CIO and non CIO organisations and apart from a few end-of-year paperwork differences there’s no day to day difference, just the reassurance that as a trustee you’re more protected in a CIO charity than a non-CIO one. Unless you think the way the Men’s Shed is particularly recklessly operated then becoming a trustee of it shouldn’t concern you. As a trustee you do of course then get some input into how it’s run. Last edited by Chris; 23-07-2021 at 11:37.