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cic seminar
The event is being organised by Needham Market Internet Cafe in association with Supporting Contemporary Adolescence (SCA), and with support from the CIC Regulator, to help raise awareness of CICs and show how they work within the third sector.
The event is free and will provide a good opportunity for networking with Local Authorities, funding bodies and local CICs. Full details are given below:
Where: Needham Market Youth Centre, School Street, Needham Market, Suffolk (see map)
When: 1pm – 4pm Wednesday 9th July 2008 (sandwiches / snacks will be available from 12.30)
Programme:
13.00 - Tea & Coffee
13.15 - Welcome & Introductions
13.30 - The benefits of being a CIC - Sara Burgess, CIC Regulator
14.15 - Tea & Coffee
14.30 - Case Study – Supporting Contemporary Adolescence CIC
15.00 - Case Study – Needham Market Internet Café CIC
15.30 - Networking with buffet
16.00 - Close
Community Interest Companies are a relatively new form of company, designed for social enterprises that want to use their profits and assets for the public good. Social enterprises are a fast-growing sector of the economy, yet some of the legal forms were originally designed for completely different types of organisation. The Government created CICs to support the sector by creating a modern and appropriate legal vehicle.
CICs are not limited to this form though and the flexibility in the approach can accommodate different structures, membership and governance. Essentially, the CIC form can accommodate co-operative, not for profit, voluntary or commercial models as long as all their activities contribute to providing benefit to the community.
The C.I.C. limited by guarantee is a “not for profit” company with a statutory asset lock in its memorandum and articles of association.
Compared to a charitable company the CIC has:
*Greater flexibility in terms of activities
*No trustees and no trustee control
*Directors who can be paid, but this is regulated
*Light touch regulation, but no tax incentives
*A charitable company has additional reporting requirements and administration e.g. SORP requirements.
Compared to an ordinary company the CIC has:
*An asset lock, which is inexpensive and easy to set up
*Statutory provisions, which prevent the members of the CIC removing the asset lock by special resolution
*Regulation to ensure the CIC maintains its asset lock and provides benefit to the community it was set up to serve
*Checks and balances provided by CIC legislation
*A community benefit report open to public scrutiny
*Transparency of directors’ remuneration and use of assets
*Legal protection from de-mutualisation and windfall profits being paid to directors.
The asset lock provisions inherent in the CIC model give confidence to those wishing to fund the company that the assets and profits will be devoted to the benefit of the community. The CIC annual report ensures transparency and that those affected by and benefiting from the CIC’s activities are properly recognised as stakeholders.
The community interest statement shows how activities will be for the benefit of the community and how this will be achieved. The community interest test, "whether a reasonable person might consider the CIC’s activities are carried on for the benefit of the community", has to be passed and is overseen by the CIC Regulator to ensure continued adherence to approved objectives.
We hope the seminar will be an interesting and informative process that will help raise the profile of CICs within the area and provide confidence and clarification for potential funders that we are non-profit companies, providing services similar to those of charities, with enhanced flexibility to meet the needs of a 21st century Britain.
Further reading:
CIC Regulator - http://www.cicregulator.gov.uk
CIC Regulator FAQ's - http://www.cicregulator.gov.uk/faq.shtml
Introduction to CICs from the Social Enterprise Coalition - http://www.socialenterprise.org.uk/Page.aspx?SP=1626
William Davies, New Statesman, 13 September 2004, "How to tame capitalism - http://www.newstatesman.com/200409130021
Leaflets: (available as pdf downloads)
Funders Leaflet - March 2008
FAQ for Funders
The Benefits of a CIC
Tom Barker
NMIC May 2008