A new legal form for charities: the Scottish Charitable Incorporated Organisation

Much of the comment and discussion on the Charities and Trustee Investment (Scotland) Act 2005 has rightly focused on the introduction of the new test for public benefit. Far less publicity has been given to the creation of a new incorporated legal form for Scottish charities, the Scottish Charitable Incorporated Organisation (‘SCIO’). The SCIO follows the limited liability partnership and the community interest company as the latest legal form to be introduced in the United Kingdom since 2000 but is the only one of the new forms to be available only for use in Scotland. This short article outlines the reason for the introduction of the SCIO, identifies the key features of the new body and identifies a number of issues arising from the way the SCIO has been structured which may impact on its immediate attractiveness as an alternative to other organisational forms