Closing your charity
There are many reasons why a charity in Scotland may decide to close down, for example:
- The charity has successfully achieved its purposes so there is no longer any need for the charity to exist.
- There are ongoing issues with finances or governance problems which make it impossible to continue operating.
- The charity has merged with another organisation to better serve beneficiaries.
The process of closing down a Scottish charity is known as winding up or dissolving. If your charity is considering winding up or dissolving, it’s important to follow the correct procedures to ensure you comply with Scottish charity law.
How do I wind up or dissolve my charity?
You must get OSCR’s consent before winding up or dissolving your charity. This is to make sure that any remaining assets of the charity will only be used for charitable purposes, as required by charity law, and that you have followed the rules in your governing document.
Read our guidance on winding up or dissolving a charity to find out what you need to do, things you need to consider, and how to apply to OSCR for consent to wind up or dissolve.
There are different rules when it comes to dissolving a SCIO. Read the dissolution section in our SCIO guidance for more information.
What happens after a charity is dissolved?
To dissolve a charity means causing the charity to cease to exist. Once we have given consent, you must wind up or dissolve the charity following the rules in your governing document and the requirements of your charity’s legal form.
One this is done, you must notify us within three months and send us any information we asked for when we gave consent. We will only remove you from the Scottish charity register once we receive this information.
After the charity ceases to exist, OSCR still has the power to make inquiries into former charities if necessary. We may also decide that a former charity’s assets need to be monitored, for example if there are a high value of assets at the point of removal. In this case, the former charity will be required to submit financial information to us annually.