Complex structure requires specialist support in CIO conversion

Known for our specialist advice in this area, we were instructed by a long-standing unincorporated Almshouse and grant making charity on their conversion to a charitable incorporated organisation (CIO).

The conversion was made more complex by the question of whether the almshouses and other property constituted permanent endowment of the charity. The charity had also diversified in recent years into the care home business and the transfer of this business needed to be carefully managed. As a result, the objects were updated to ensure they are fit for purpose as the charity looks to the future.

The issue of permanent endowment required a search of the charity’s historic documents including requests for documents from solicitors who previously acted for the charity. After thorough investigation, the conversion went ahead, supported by solicitors from the HCR Real Estate team and HCR Employment team who advised on the TUPE process.