What is the difference between a charity dissolution and a voluntary winding up?

• A. Dissolution is the formal end of a charity's status overseen by the regulator; winding up refers to closing operations and distributing assets according to the charity's governing document.
• B. Dissolution is the process of appointing trustees; winding up is the grant of charity status.
• C. They are the same.
• D. Winding up only occurs in the corporate sector.

Answer: (A)

The difference is between closing operations and ending the charity’s legal existence. Winding up is the process of bringing the charity’s affairs to a close: trustees wrap up activities, settle debts, and distribute any remaining assets in line with the charity’s governing document (or applicable law). Once that winding-up process is complete, the regulator can formally dissolve the charity, removing its status and ending its legal existence. In short, winding up handles the close-out actions, and dissolution is the formal end of the charity as an entity. The other options don’t fit because they mix up roles or describe unrelated steps.