Converting a Community Interest Company to a Registered Charity
In our winter 2009 newsletter we wrote about some of the myriad range of legal structures that exist for voluntary sector organisations. One of the newer structures available is the Community Interest Company (CIC), which was established a few years ago to give businesses operating for the benefit of the community an independent confirmation of their not-for-profit status, whilst allowing for Board members to be paid and for limited returns to be paid to investors.
CICs have become established as one of the choices available to anyone setting up a charitable enterprise, however many have proceeded with the structure without giving full consideration to whether it is right for their needs. Registered Charities for example, continue to have wider public recognition and greater access to grant funding.
We recently became aware of the first conversion of a Community Interest Company to a Registered Charity, which was undertaken by our associate Legal Consultant.
The choice of structure is of paramount importance to any new or expanding enterprise. Therefore as part of our business planning service we can assist in establishing which structure would be right for you. Working in close partnership with our associate Legal Consultant we can then assist with establishing or changing the legal structure of your organisation. Please contact Peter See if you are interested in this service.
