Limited liability

This is the single most consequential difference between charity structures, and it is frequently misunderstood.

A CIO or a charitable company has separate legal personality, so the organisation owes its own debts. A trust or unincorporated association does not, and its trustees are personally liable.

Incorporating the trustee body under Charities Act 2011 s.254 does not create limited liability — it is an administrative convenience for holding property. See choosing a legal structure.