As a Community Interest Community in the UK, it is nearly impossible to be recognised as a Non-Profit or even be given the same support as Non-Profits receive.

As Per the CIC Regulator website:

"There are now over 26,000 CICs (as of 31st March 2022) delivering substantial benefit to communities throughout the UK, engaged in every sector of the community including health, social care, transport and the environment."

There are Several Reasons why Entities choose CICs over CIOs and Charities, Including:

• More Flexibility in the Management of an entity compared to CIOs and Charities.
• The ability to generate revenue enables social objectives' sustainability and reinvestment.
• Less Regulatory Restrictions and Policies.
• Having Salaried Directors enables individuals to run and manage their Social Impact Companies as a sustainable form of Employment.
• CICs are more risk tolerant, whereas CIOs and Charities are risk averse
• Disabilities or Additional needs which prevent organisations from Complying with the obligations and legislation of the Charities Commission.

 

The Decision of CIC over a Charitable Entity is never easy as even though you are a not-for-profit, you still have obligations like:

• Asset Locks
• Corporation Tax Obligations
• Annual Reporting (Including Director Dispencements/Disembursements)
• Reporting on the change and impact, you have had during the year

This is a Trade-Off because you automatically lose money towards your charitable aims and objective to the Tax System, and it is also harder to obtain grants.

 

As the undersigned, we call out Corporations and their enablers to support Social Impact Companies and Community Interest Companies as part of their philanthropic work and to make more of a positive change within society in the UK.

We Directly invite the industry leaders to review their procedures and policies to enable fair provision for Community Interest Companies in the UK to give CICs a wider reach and more support in effecting positive change and supporting more entities which are effecting positive change, including smaller-scale organisations. 

We View the current provision leaders who can help us make this change as follows:

• Percent
• Charity Digital / TechSoup
• Digital Lift

Further, we Invite the following Technology Industry Leaders to be the first to adjust their eligibility criteria and instruct their Third Party Vetters to do the same to create more Successful and Viable Social Impact Companies:

• Monday.com
• Microsoft Non-Profits
• Google Non-Profits
• Atlassian

 

Proposed Changes

We propose that these organisations change their eligibility criteria in the following ways:

• CIC Eligibility should be governed by their Articles of Association and NOT Charitable Status
• CICs with the Relevant wording to indicate that they are NOT operating for the sole purpose of Private Gain should be deemed as "Non-Profit, Not-For-Profit or Social Change Organisations" and be able to take advantage of the philanthropic side of Businesses.
• CICs who indicate that they are working towards Social Impact/Social Change but do so on a for-profit model should be eligible for a Discount rather than entitled to Non-Profit Offers.

 

How These changes will impact Society in the UK

• Community Interest Companies will have better sustainability while allowing more revenue to be directly funnelled back to the community through projects and services.
• The ability to receive technology grants will allow more CICs to adopt technology in their day-to-day operations to streamline their goals and everyday activities, allowing them to spend more time dedicated to their cause.
• Making technology available to Qualifying CICs will allow more Community Interest Companies to go paperless, allowing them to be more Eco friendly by reducing their footprint but also affording them more security towards data handling.
• Making technology available through grants will also promote more CICs. Their directors and stakeholders not only learn digital skills they may not otherwise hold but also embrace the change of going digital and the digital movement revolutionising the future.

 

How this benefits Corporations and Corporate Entities

• Corporations will achieve visibility for supporting local initiatives and Changemakers with smaller-scale operations.
• Corporations will be seen as more inclusive and supportive of Social Impact and Community Interest initiatives rather than just supporting the "Big Causes" that can give them good publicity.
• Corporations can support those affected by social issues and have dedicated their life's work to be change makers initiating change for those who may not otherwise get the support they need.
• Corporations can support those who can only enter the workplace by starting Social Impact and Community Interest ventures due to marginalisation and discrimination.
• Corporations will find that Not-For-Profits will likely purchase commercial services from the vendors rather than feeling treated like "another corporate customer" while trying to make a positive change.

Change comes from multiple entities rather than just the "Large charitable entities with global PR", and it is time to encourage more changemakers who want to effect change rather than look good!