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A Kent-based charity – appropriately named ‘Challenge to Change’ – has become the first registered charity in England and Wales to incorporate as a Charitable Incorporated Organisation (CIO). The new legal status for charities, offered by the Charity Commission, follows legislation laid down by the Minister for Civil Society, Nick Hurd, in October 2012. It allows charities to incorporate, thereby limiting their liabilities. Previously, charities which wished to limit their liabilities, required dual registration, both as a charity with the Charity Commission, and as a company limited by guarantee, with Companies House.

Challenge to Change has operated as a charitable trust for about four years, supporting poor communities in Vietnam to adapt to climate change. Graham Adutt, Director of Challenge to Change, explained why the organisation decided to incorporate:

“Our local staff in Vietnam are regularly out on motorcycles in rural and coastal areas,...

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