Charity

We think the apparently inexorable rise of the SCIO as the Scottish charity legal vehicle of choice is on the whole a good thing. We will be blogging more on this.

However, it strikes us that one future governance risk for SCIOs is being created by the use of the terms “single tier” and “two tier”. They are essentially legally meaningless and generally misleading.

Worse, they can and do get in the way of a charity exploring and creating the right structure and governance “model” (another word to be banned) for it and its own purposes.

Rather, charities should be embracing the flexibility of SCIOs and thinking about the distribution of rights, responsibilities, accountability and powers within the “chosen” (a word to be embraced) structure and among the key groups in the charity. Ultimately, focussing on what works best for the charity in furthering its purposes as opposed to deciding only between “single tier” and “two tier” as the basis for its governance.

For the latest in charity law and regulation updates, follow our blogs, updates, @BCharitable twitter or watch out for our next seminars.

Alan Eccles

Partner at Brodies LLP
Alan is a Partner specialising in private client (succession, incapacity and asset protection) matters as well as the charities, third and impact sectors.
Alan Eccles