In June 2005, the Government
introduced a new legal entity, the Community Interest Company
(or CIC) in a move to remove some confusion over "social
enterprise" and create a specific "brand" for social
enterprises - in order to reassure the public at large.
Since
2005, social enterprises have been able to start up as, or convert
to this new legal entity known as a Community Interest Company
(or CIC). They may be companies limited by guarantee or shares,
but all carry the suffix "Community Interest Company"
or "CIC" in their name.
The
Government created the new entity of Community Interst Company
(or CIC) because back in 2002, the Prime Minister's Strategy Unit
published its report on the legal and regulatory framework governing
charities and the voluntary sector," Private Action, Public
Benefit". It outlined a range of proposals, including the
creation of a new social enterprise brand to
reassure all stakeholders.
Today,
Community Interest Companies (or CICs) even have their own regulator.
There
are now nearly 6,000 Community Interest Companies (or CICs) in
the UK, of which over 60 are in Suffolk.
The CIC Regulator's office is currently registering 200 new
CICs each month. The number of dissolutions are running at 40
a month, which compares favourably against Companies House
and probably the Charity Commission.
Community Interest
Companies operate the same as any ordinary private sector company
and do not receive tax breaks by virtue of their status. Hower,
Community Interest Companies (unlike ordinary private sector
companies) are making a powerful statement - they are going
to operate for the benefit of the community and they are happy
to be regulated to ensure they do so. .
Most funders are reassured
by this, as Community Interst Companies are social enterprises,
forming part of the third sector, and may apply for grants offered
to third sector enterprises, alongside registered charities.
"The
Community Interest Company does what it says on the tin. The concept
is straightforward. It has the interests of its community at heart
and proves this by agreeing to regulatory oversight of the use
of its assets and social purpose and by providing transparency
in the way it operates." Sara Burgess, CIC Regulator
One
of our members has provided this short PowerPoint presentation:
"An
Introduction to Community Interest Companies".
To
view, please click
HERE..
(click on white screen to start and progress)
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