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Converting a Charity to a Charitable Company

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In converting a Charity to a Charitable Company can we keep the current charity name and bank accounts?

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By lionofludesch
03rd Jul 2020 12:41

Yes - provided it's a conversion rather than a transfer of the charity to a brand new body.

EDIT Re-reading it, I've probably misunderstood. If you're converting from an unincorporated charity to a charitable company, no, you can't use the same bank account.

What you need is a CIO, though. Not a charitable company.

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By eteb3
16th Jul 2020 11:21

There can be good reasons to adopt a charitable company form rather than CIO: eg, there is a register of charges at CH which can help when raising finance.

You can also use bespoke articles rather than the CC model, if you know what you're doing - eg, if you want different classes of members. (I think Bates Wells say they can secure bespoke CIO articles from the Commission, but most charities coudn't afford to park outside their offices, never mind their fees.)

But yes, generally a CIO is much less of a headache.

Lion, what is the effect of the vesting provision in s. 210 Charities Act - does that allow you to keep the same bank accounts, even though the CIO is a new legal person?
https://www.legislation.gov.uk/ukpga/2011/25/section/210

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By WhichTyler
16th Jul 2020 11:58

eteb3 wrote:

Lion, what is the effect of the vesting provision in s. 210 Charities Act - does that allow you to keep the same bank accounts, even though the CIO is a new legal person?
https://www.legislation.gov.uk/ukpga/2011/25/section/210

That is likely to depend on the bank's processes as much as on legislation. In my experience of small charities, setting up a new account is a headache, but a lesser one than trying to change an existing one:
'Hello please can we change the name on our account'
'Possibly; are you authorised to manage the account?'
'Yes: I am the treasurer'
'Well it says here that Doris Blenkinsop is the only name on the account'
'That's a pity as I believe she passed away in 1989'
'Well do you have minutes of the meeting where you were appointed?'
'Maybe.'
'They need to be signed by the chairman, a Mr Blenkinsop'
'Aah, another sad loss to the community, shortly after Doris's demise'
'In that case please can you ask all the trustees, management committee and employees with signing authority to provide copies of their passport and recent utlity bill. And all the minutes appointing those people and authorising them to act for the charity. Signed by one of the Blenkinsops'

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