CONVERTING AN UNINCORPORATED CHARITY, OR CHARITABLE TRUST, TO A COMMUNITY INTEREST COMPANY
A community interest company must be a limited company. Therefore an unincorporated charity (including charitable trusts) cannot convert to a community interest company.
However, the community interest company could be appointed as a corporate trustee of the charitable assets belonging to the unincorporated charity (or charitable trust) and could then apply the charitable assets for the furtherance of the charity's objects.
If the community interest company was incorporated, with the same charitable objects as the unincorporated charity or trust, the assets could be transferred to the community interest company for the furtherance of its objects, although the tax concessions from which the charity benefited would be lost.
If the unincorporated charity, or trust's assets, were depleted to a point where there were no assets remaining it could be wound-up. The option to wind-up would not apply to an unincorporated charity, or trust, that held a permanent endowment i.e. an asset, including land investments, which must, under a legal document, be held permanently by the unincorporated charity.