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:
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Continuity of purpose – once incorporated it will continue as a CIC, providing benefit to the community, until dissolved or converted into a charity
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There are clauses, and an asset lock, to prevent demutualisation.
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The Limited liability of a company
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Greater flexibility than a charity but with no tax incentives
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Sailors Creek CIC’s purpose is defined as:
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to regenerate and enhance the boating community of Sailors Creek and the biodiversity of the adjacent fields.
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to support ecological, social, environmental and artistic activities in Sailors Creek and within a five mile radius thereof.
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to publicise and promote the work of Sailors Creek, and other local regenerative grassroots organisations, within the local community.
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to introduce members of the general public to the pleasures of life afloat, and to the rewards of cultivation.
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