CIC Association

Serving Community Enterprise

Hi, it has been a while since I have posted and things have moved on hugely in our organisation. We are now adding a charity to run alongside the CIC and the profits from the CIC will be donated to the charity. It has been such a long traumatic journey that is continuing currently with Charities Commission who keep asking more and more questions. We are now in the position that we need to change our governing document to reflect that the only member will be the charity. So....my questions here are 1. can the Directors stay as Directors without any voting rights and if so is there any benefit to having them? 2. Can the Directors resign from their position and become Trustees of the charity or will there be any conflict of interest? 3. If the CIC voting rights are given to the charity does that meant that the Trustees of the charity now essentially run the CIC? 4. If number 4 is actioned, will the ex-Trustees of the CIC be able to take part in discussions and voting for the CIC and or charity

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Hi Sharon - new CIC Assoc member here.

We are doing exactly the same thing as you I think in adding a charity to an existing CIC. There is excellent guidance on the Charities Commission website which enabled us to create our preferred model of Foundation charity where the trustees are the members (our CIC has the wider membership). As far as I understood the Board of Trustees for the Charity must be different to the Board of Directors for the CIC to provide a degree of independence. Once our new charity is set up we intend to resign all but one Director from the CIC and nominate them as Trustees, leaving the remaining CIC Director and myself as CIC CEO as the new Board of Directors. Your final questions depend on what you have said in your constitution.

The fly in this process is getting registration approved. Our second application is in the Charities Commission in-tray and we have a five month wait before they take any further action. Because of this delay we are now looking at forming a second CIC and moving to a charity once established as we can then at least do some work in that intervening months. I would be interested to hear your experiences of applying for charity status.

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