Questions & Answers

What is a CIO?

A CIO stands for “Charitable Incorporated Organisation” and is designed for charities where Trustees have no or limited liability for CIO debts or liabilities. A CIO must be registered with the Charity Commission and will hold a governing document under which it must operate.

Why do we need regional CIOs?

In response to the 2041 report the legal identity and liability of the Associations became a cause for concern. A regional CIO offers both protection, opportunity and accountability.

• In terms of protection, the liability is moved away from the personal responsibility of officers to limited liability protection (except in a case of negligence) for Trustees.
• In terms of opportunity, a legal entity means the organisation can for example, hold and administer funds, enter into contracts, hold property, apply for grants and undertake employment. Looking beyond our current structures, the legal advice is that a CIO offers a more appropriate structure for organisations as they face the challenge and opportunities presented in the 2041 report.
• In terms of accountability, a CIO is regulated and accountable to the Charity Commission under charity law.

How many regional CIOs are we proposing to form and why?

The proposal agreed at the Council was to create four or five new regional CIOs, to include:

1.North (West) Wales: Arfon and Môn

2. Central Wales: Rads and Monts and Breconshire

3. Glamorgan (East and West)

4.South-West Wales (Pembrokeshire and Carmarthenshire and Ceredigion)

              a. This will possibly be two CIOs, English and Welsh Languages

What about the Gwent and DfM Associations?

The Gwent Association have already formed a CIO. The DfM Association have been an incorporated company for many years. Both Associations remain an integral part of the Baptist Union of Wales and are open to ongoing partnership with the regions.

Are we replacing the Associations and who will look after the churches?

No. The existing Associations will continue to operate as they do now with Officers and regular meetings. They will continue to offer essential pastoral support to the churches and will remain the first point of call to member churches as and when the needs arise.

Does a regional CIO change the way the Union relates to the Associations and churches?

No. The structures of the Union will remain with the representatives of the Associations attending the Boards, Committees, Council and Annual Meetings. There are no proposed changes to the governing document of the Baptist Union of Wales, which is already a registered CIO.

What does the CIO do?

A CIO is a legal body whose sole purpose is to further the work of its charitable objectives.  These charitable objectives will be shared in common across the regional CIOs and with those of the Baptist Union of Wales, all of which align with “the advancement of the Christian faith according to the principles of the Welsh Baptist denomination”.  In essence the work of the CIO will be to further the mission of God through the Baptist denomination in Wales.

How does the CIO produce a missional plan that reflects the vision of the churches and Associations?

If the work of the CIO is mission, a strategic missional plan will help to ensure that the vision for mission reflects that of the Association and churches. The CIO is to be the engine that drives the mission of the Association and churches forward. It is important that the missional plan is developed in consultation with the churches and Association and is a response to the opportunities discerned within the region.

How can the regional CIOs work together across the regions and with others?

The historic Baptist principle of ‘Associating’ arises from a recognition that we are stronger when we work together. We value the independence of the local church, but we also recognise our inter-dependence on God and each other. To this end, each regional CIO will invite representatives from the neighbouring regions to share ideas, good practice and work together. The ability to hear from other partners around the table will enhance our work together as we share our resources.

How will all this work in practice?

Isn’t this just another layer of bureaucracy?

The primary driver for this process is to establish a solid legal structure moving forward. However, this is not designed to add an additional heavy burden upon churches or the Associations.

To quote our legal advice:

“This new structure needs to be agile and efficient, able to adapt to the challenges faced by the Baptist denomination in Wales in the coming years, as well as maintaining transparency and accountability to the Baptist family in Wales, the charity regulator and the wider public.”

Who will manage and run the regional CIO?

Each Association will elect and appoint TWO Trustees to the regional CIO.
The Baptist Union of Wales will appoint ONE Trustee to each regional CIO.

What kind of people should we be looking for to be Trustees?

We are aware of the heavy demands placed on existing Association Officers and would hope that there might be those within our churches who may feel a call to this role. A description for the role of Trustee will be drafted so that potential candidates can determine what the commitments are if they are suited to the role. Clearly, a CIO Trustee will require an active Christian faith, membership in one of our churches and some understanding of the missional context. Beyond this, there are certain legal requirements that may prohibit some people from holding this position.

How will the CIO be accountable to the Association, churches and Union?

The regional CIO will report to the Association and the Union through its representative Trustees. By electing a Trustee, the Association chooses who they wish to represent them on the regional CIO.

What about finance?

How will the CIO be financed?

Currently Association funds are held on behalf of the Associations by the Baptist Union of Wales. This treasury function will continue with budgeted income and expenditure accounted for in accordance with the missional strategy agreed by the CIO working with the Associations and churches. When Trust deeds allow, proceeds from the sale of chapels, grants, gifts, investment income and legacies may be used for the purposes of mission.

How will the CIO deal with the administration of running a small charity?

Instead of duplicating work across the four or five CIO organisations, it is hoped that some form of centralised support services may be provided from the Union. This could assist with administrative tasks such as policies, employment, bookkeeping, reporting, safeguarding, insurance etc to avoid placing any additional burden on the CIO.

Will the creation of a regional CIO mean more subscriptions and costs to churches?

No.

Timetable

January – March 2024

Presentation to Boards, Committees, Council and Associations regarding the 2041 Report and our ‘direction of travel’. 

March – August 2024

Legal advice from BUW solicitors to establish a draft governing document for the regional CIOs including various options.

September – December 2024

Further consultation with Associations around the governing document for the CIO.

BUW Council (online) for update and discussion (Nov)

Solicitors produce a draft governing document.

January – March 2025

Draft CIO governing document for consultation with Association officers.

Council proposal and agreement on draft CIO document.

April – July 2025

Association proposals to annual meetings.

BUW Annual meetings.

The regional CIO proposals will be submitted to the Charity Commission for formal registration in 2025.