Building on the Big Society idea, the Government has introduced a policy that will make it considerably easier to set up and run a charity. The option of creating Charitable Incorporated Organisations (CIO) has been established to make this a reality. Previously, most charities were unincorporated and the trustees could be held personally liable for any debts of the charity.
In order to overcome this, charities used to registered as companies with limited liability, but this is often time consuming, bureaucratic and costly for small and medium sized charities. Now registering as a CIO will provide trustees with limited liability, but without the costs and red tape of running a charity as a company. It is hoped that these changes will encourage more people to come forward and volunteer as charity trustees.