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  • #2848

    Forum_Admin
    Member

    Hi all,

    I am trying to find out about Community Interest Companies and where they stand on funding? Does anyone know of any funders who are interested in funding CIC’S? The closest I have found is Esmee Fairburn, but up to now I am struggling to find much info on this. Are CIC’s only options community loans? Any info would be welcomed. Thanks

    #9549

    Forum_Admin
    Member

    AS I understand it, the thinking behind CICs is that they will operate more or less as conventional business, but with a community ethic and the capital lock. Those who formulated the concept probably had it in mind that charitable funding would be available to them, but not a great deal has materialised as yet.

    Some Trusts have already specifically excluded CICs from their funding remit. Many others, I suspect, are adopting a “wait and see” strategy, and the majority would probably say they look at each request on its merits.

    I’m not yet aware of any that list CICs as specifically eligible, and I’m not sure I would expect to see that any time soon.

    Cheers

    Gerry

    #9550

    Forum_Admin
    Member

    The whole CICs thing is a bit of a dog’s breakfast to be honest. “Specifically stated” social enterprises as statutorily constituted organisations are relatively new and CICs was introduced as a quick and not very effective fix. In my limited experience of social enterprise, registering as a company with stated charitable objectives in memorandum and articles – but *not* as a CIC – may help. Esmee Fairbairn, for example, is a trust that I *know* will fund social enterprises that are not registered with the Charities Commission (only with Companies House).

    It really depends on your timescale. If you can hold out for a few months, then the new Charities Act has a provision for CIOs – Charitable Incorporated Organisations – which will be implemented in early 2008. This might be the best route to investigate.

    {Oblig disclaimer: IANAL} – as far as I understand it, CIOs will be companies in that they have limited liability and can have shareholders/equity and pay dividends to investors or for reinvestment. However, they will only have to report to the Charities Commission and not Companies House. I suspect that there will be a fair few charities who go the CIO route rather than carrying on with the dual reporting – Companies House and Charities Commission – that limited status currently demands.

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