Responsibilities of SCIOs and other legal forms
Charities in Scotland can have different legal forms. The legal form refers to the structure of the charity, and these can be either ‘incorporated’ or ‘unincorporated’.
Different legal forms have different characteristics, benefits and requirements. Our Becoming a Charity section explains more about how to choose the right legal form for your charity’s size, purposes and plans.
The four main types of legal forms for Scottish charities are:
|
Incorporated |
Unincorporated |
|
Scottish Charitable Incorporated Organisation (SCIO) |
Unincorporated association |
|
Company |
Trust |
Scottish Charitable Incorporated Organisations (SCIOs)
The Scottish Charitable Incorporated Organisation is a legal form unique to Scottish charities. SCIOs can enter into contracts, employ staff, incur debts, own property, sue and be sued. It also provides a high degree of protection against liability.
However, there are important differences between a SCIO and any other type of body with charitable status in Scotland.
Our guidance will help you understand the requirements of SCIOs.
Becoming an incorporated charity in Scotland
Around 70% of new applications to become a charity are for an incorporated legal form, mainly SCIOs.
When a charity wants to move from an unincorporated legal form to an incorporated legal form there are certain things the charity has to do, or should be aware of, for that move to happen properly.
Our Guide to Incorporation explains more about the things you need to consider before changing your charity’s legal form, and the process of applying to OSCR for incorporation. We also have specific guidance for those advising village hall charities about incorporation or making changes to their governing document.
Cross-border charity regulation in Scotland
Cross-border charities are charities which are registered with both the Charity Commission for England and Wales (CCEW) and the Scottish Charity Regulator (OSCR).
Generally speaking, all charities registered in Scotland (and therefore cross-border charities) have to fully comply with the requirements of Scottish charity law and report annually to OSCR.
Our guidance explains more about when a charity needs to register with both regulators, what this means, and what your responsibilities are as a cross-border charity.
Social enterprises in Scotland
Social enterprises are businesses and operate on a profit-making basis, putting those profits back into the social mission or purpose of the organisation.
Although social enterprises are not charities themselves, they can become charities in Scotland if they pass the charity test and apply to OSCR for charitable status.
See our guidance for social enterprises thinking of becoming a charity in Scotland for more information.