Common Investment Funds
Common Investment Funds (CIFs) are collective investment schemes which are open only to charities in England and Wales. They are set up by Schemes made by the Charity Commission under section 22 of the Charities Act 1960 or section 24 of the Charities Act 1993. They operate as investment vehicles and are deemed by law to be charities themselves. They are therefore eligible for registration as charities in their own right.
CIFs are similar to unit trusts but, unlike unit trusts, they are not authorised by the Financial Services Authority (FSA).
CIFs provide a tax efficient vehicle through which a charity can diversify their investments to reduce risk and are also administratively simple and cost efficient. They enjoy the same tax status as other charities.