What is a CIC?

CIC stands for Community Interest Company – it is a limited company that provides benefit to the community. It also has an asset lock that prevents selling the company assets.

What is the difference between a CIC and a charity?

A CIC is expected to make a profit/surplus whereas a charity is considered as a not for profit which should not profit from the work it carries out. CICs are expected to reinvest their surpluses to do more of their work but can also pay a proportion of this out to the owners or investors.

 

The CIC structure provides:

  • Continuity of purpose – once incorporated it will continue as a CIC, providing benefit to the community, until dissolved or converted into a charity

  • There are clauses, and an asset lock, to prevent demutualisation.

  • The Limited liability of a company

  • Greater flexibility than a charity but with no tax incentives

 

Sailors Creek CIC’s purpose is defined as: 

(1) To regenerate and enhance the boating community of Sailors Creek and to protect and enhance the food resilience and biodiversity of the surrounding area.

(2) To promote and support ecological, regenerative and restorative projects in the surrounding areas (within a 5 mile radius of Sailors Creek) of an agricultural, artistic or architectural nature.