CIC or charity — which is right for you?
Picking a legal structure is one of the most confusing first steps. Here are the key differences to help you decide.
The short answer
- Choose a charity (often a CIO) if you'll mostly rely on grants and donations, want tax reliefs like Gift Aid, and are happy with unpaid trustees.
- Choose a CIC if you'll mainly earn income by trading, want directors who can be paid, and want lighter regulation.
Control and pay
Charity trustees generally can't be paid for being trustees. CIC directors can be paid a reasonable salary.
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Questions people ask
Which gets more grants, a CIC or a charity?
Charities are eligible for more trusts and foundations, but many funders also support CICs limited by guarantee.
Can I change from a CIC to a charity later?
It is possible in some cases, but it takes time. It is easier to choose the right structure from the start.
Written by Jessie Joe Jacobs. Jessie has worked in the UK voluntary sector for around 25 years and founded the Teesside charity A Way Out. She founded Charity Builder to give small groups the support a local CVS would.