SCIO Guidance
What is a SCIO?
A Scottish Charitable Incorporated Organisation (SCIO) is a legal type of corporate body only for Scottish registered charities. This is the perfect type of charitable framework to starting a Scottish Men’s Shed.
The SCIO is a legal form unique to Scottish charities and is able to enter into contracts, employ staff, incur debts, own property, sue and be sued. It also provides a high degree of protection against liability.
The SMSA suggests that once you have formed your steering committee and become a constituted group (see constitution guidance), the next step is to create your Development/Business Plan (see SMSA library template downloads) which will accompany your submission for SCIO charity status with OSCR.
Ready to apply?
If you are ready to begin your application, you must use OSCR’s ‘Ready to Apply’ guide and online application forms.
PLEASE NOTE THE THINGS YOU WILL NEED TO DO:
- completed and signed trustee declaration forms for each of the proposed charity trustees
- a draft governing document
- If applying to be a SCIO, you must have a miniumum of three charity trustees
Once you have your charity status there is the submission of your annual accounts, trustees report and the Independent examiners report if your SCIO accrues less than £250,000 per year. That would be most Men’s Sheds.
You will also find all the before mentioned documents in our online library for SMSA Shed Members to download and read at your leisure. So be sure to join us as a Developing Group Shed Member so you don’t have to reinvent the wheel when starting your journey into Scottish Men’s Sheds.
Additional useful resources:
- OSCR VIDEO: The role of the charity trustee
- OSCR: Receipts and Payments Accounts Work Pack
- OSCR VIDEO: Advice for first time charity trustees
- VIDEO: How to create an effective Trustees' Annual Report
- OSCR Video: Top tips on what makes a good, well managed charity
- You will find more helpful videos on the OSCR You Tube Channel
Review your governing document regularly
It is good practice to review your charity’s governing document regularly – at least once a year – to make sure it is still fit-for-purpose, and to remind your charity trustees of the rules. OSCR has a helpful webinar to explain the importance of this document being up-to-date and how to change it and seek help from their team.
Advantages
- A SCIO is subject to the same regulation as ordinary charities, with a better ability to act as a business body.
- An OSCR* approved SCIO can enter into contracts, employ staff, incur debts, own property, sue and be sued. This means a SCIO can offer a higher degree of protection against personal liability for its trustees and members. A Shed having SCIO status will also provide reassurance for potential Shedders, those entering into contracts with it and its creditors.
- It’s free to create one.
- Opens doors to funding opportunities.
- Creates a working model of governance for the board and the members e.g. a SCIO must keep detailed registers of its trustees and list all members, and ensure that you have regular members and trustee meetings.
- Unlike charities that are ‘companies limited by guarantee’, SCIOs will only have OSCR as a single regulator.
Disadvantages
- Paperwork and discussions during application which men often don’t like doing.
- Format may feel to be too much or overwhelming for start-up Sheds.
- Restrictions on the duties and powers of members and trustees.
- References to SCIO status in all the charity’s documents.
- If a SCIO loses charitable status, it must be wound up.
- A SCIO cannot reconstitute itself in another form e.g. a trust, it will have to be wound up.