Scottish Charitable Incorporated Organisations - dissolution regulations amendments: consultation analysis

Conclusion and next steps

We consulted on proposals to amend the dissolution regulations for SCIOs. These proposals have the overarching aim of increasing public confidence in the dissolution process, improving regulatory efficiency, and ensuring there are appropriate safeguards for charitable assets. Our analysis shows that respondents broadly supported these proposals.

There was strong agreement that a SCIO should be required to be inactive once it applies to dissolve. Additional changes to the dissolution process – by amending the application forms, public notices and procedural requirements – were supported for reasons of increasing transparency, improving governance and aligning SCIOs more closely with other legal forms of charity. While respondents consistently emphasised the importance of proportionality, there was a shared view that clearer processes and enhanced information would benefit trustees, funders, and the wider public.

There was significant support for giving OSCR the power to remove inactive and non‑compliant SCIOs from the Register without involving the Court of Session. Respondents recognised the regulatory and reputational benefits of ensuring that the Register is accurate; and of enabling OSCR to deal more effectively with SCIOs that are defaulting and unresponsive, or that no longer meet the charity test. At the same time, respondents highlighted the need for appropriate safeguards, including clarity on inquiries into a SCIO’s financial position, and the handling of charitable assets.

Views on restoration were more nuanced and reflect the complexities of introducing a process to bring a dissolved SCIO back into existence. Many respondents supported the proposal in principle, particularly to address administrative errors, protect charitable assets, and to maintain fairness and accountability. However, there were differing views on the appropriate scope, time limits, and specific circumstances in which restoration should be available.

Next steps

We are carefully considering the views and evidence summarised in this report. We will reflect on how to refine the proposals to ensure they are clear, proportionate, and workable in practice. We will continue to engage with OSCR and key stakeholders throughout the development of detailed policy proposals.

We will consider the complex area of restoration to ensure there will be a balance between enhanced regulatory powers and appropriate safeguards. We aim to introduce finalised amendments to the SCIO dissolution regulations by the end of 2026.