CIC – Community Interest Company
A CIC is a Community Interest Company. This is a type of limited company in the United Kingdom created to serve a social purpose and benefit the community rather than prioritizing profit for shareholders. It is a legal structure designed to facilitate businesses and organizations that aim to have a positive social impact while still being able to generate income and operate in a sustainable way.
Key Features of a CIC:
- Community Benefit: CICs must demonstrate that their activities benefit the community or a specific group of people, not just the organization’s members or employees.
- Asset Lock: Any profits or assets must primarily be used for the benefit of the community. This ensures that the organization’s resources are dedicated to its social purpose.
- Regulation: CICs are regulated by the Office of the Regulator of Community Interest Companies to ensure they meet their obligations.
- Flexibility: While they operate with a community focus, CICs can trade and make a profit, providing a balance between commercial and charitable goals.
- Limited Liability: Like other limited companies, CICs provide legal protection for their owners and directors.
Examples of CIC Activities:
- Running community centers or cultural programs.
- Offering services like affordable housing or job training.
- Supporting health and wellness initiatives.
CICs are often used by social entrepreneurs and organizations that wish to balance commercial success with a commitment to making a positive difference.
