Setting up your social enterprisePresentation Transcript
Setting up Your Social Enterprise Growing a Social Enterprise in the West Midlands is partially funded by the European Regional Development Fund
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Scoping Your Project
Scoping Your Project 1 2 3 4Social Impact Business Interest Community Individual / Small Group
Scoping Your ProjectWhy is your project needed?• Make sure you mention the problems or issues your group aims to addressWhat evidence do you have to show to your project is needed, how have you consultedwith people who will benefit from your project?• Carryout surveys• Lists of people who want to get involved• Researching any statistics about people who would benefit from your projectHow will you promote and publicise your project?• Make sure that people from different backgrounds know about your project and how to benefit from itHow will your project activity seek to involve as wide a range of people as possible?• If you have identified any groups who could benefit but are less likely to attend explain why and how you plan to tackle it.
Scoping Your ProjectWhat is the change or difference your project is going to make?Your project must meet at least one of the outcomes to be considered for a grant.• People have better chances in life – with better access to training and development to improve their life skills• Stronger communities – with more active citizens working together to tackle their problems• Improved rural and urban environments – which communities are better able to access and enjoy• Healthier and more active people and communities
Developing an effective Board/Committee
The Role of the board / committee /steering group• May be given a title such as committee, management committee, board of managers, trustees, or governors• Whatever their title if they are in day to day control of the company they are, in law directors of that company• They may set up sub-committees, etc. and delegate powers to them, and may give particular „directors‟ special responsibilities, such as treasurer, membership secretary, etc.• They do not own the company as there are no shareholders. It is not possible to own a company limited by guarantee in the same way that a company with a share capital is owned by its shareholders.
Choosing your legal structure
Choosing your legal structureCharities• Are set up for a charitable purpose• Are not profit-making – so any surplus must be used only to further the organisations purposes• Are independentThey can be an unincorporated association, a trust or a company limited by guarantee.Each has a different governance structure – a charity that is formed as a registered company will be governed by aboard of directors, a charity that is set up as a trust will be governed by a board of trustees.Every charity has to have a governing document that sets out the charitys objects and how it is to be administered.To register as a charity, an organisation must have purposes that are defined under law as charitable.These include the relief of financial hardship, the advancement of education, the advancement of religion and otherpurposes that benefit the community.Once registered, charities have to obey a number of rules, which include regulations covering trustees, accounts,finances and management.Those that are registered as companies have to comply with company law too.A registered charity is not allowed to have political objectives or take part in political lobbying.
Choosing your legal structureCommunity interest companies – CIC‟sThe CIC model is designed to provide an effective legal form for enterprises which aim toprovide benefit to the community or to trade with a “social purpose”, rather than to make aprofit.• A CIC may be limited by shares or by guarantee• CIC must be registered both with Companies House and the CIC Regulator, they need the same incorporation documentation as other companies registering with Companies House, in addition, they must supply a declaration that the company is not a charity.• Must submit a Community Interest statement and an annual Community interest Report• Subject to an asset lock• Must use CIC in title
Choosing your legal structureCIC Limited By Shares• Can issue shares and pay dividends• Investment can be generated for the enterprise through issuing shares• Liability of the shareholder is limited to the amount they have paid• Subject to a dividend capCIC Limited By Guarantee• There are no shares – hence there are no shareholders• The members of a company limited by guarantee are bound by a guarantee in the companies articles of association, which requires them to pay the companys debts up to a fixed sum – usually £1.
Guide to Registration & Costs
Guide to registration
Guide to registrationModel Articles for private companies ltd byguarantee.
Guide to registrationRegistration of a CICThis can be done through Companies House directly• All forms are downloaded and completed• Not very user friendly if you have never registered a company before• Costs £35ORUse a third party• Very easy process, mainly tick boxes• Costs of up to £250www.anewbusiness.co.ukwww.companywarehouse.co.ukwww.companiesmadesimple.co.uk