I am considering forming a CIC for a social enterprise I am starting which will generate funds by offering video production services to charities, but I would also like to apply for grant funds for creating social issue documentaries. Can anyone who has experience advise whether being limited by shares would be very restrictive regarding gaining grants, or if you are limited by guarantee has the number of directors been an issue?
Any advice very much appreciated!
Many grantfunders would be concerned that the grant could be paid to investors via the shares, and in general that makes it more difficult to persuade them your CIC is a not for profit......it is more accurately a for profit CIC.
But for example Big Lottery Awards for All will provide a grant to a share CIC as long as it is ringfenced.
Grant bodies like to have unrelated members on the board to simply police each other and make monitoring of their grants more efficient. 3 unrelated Directors should satisfy most.
Being limited by shares will limit access to some grants, but grants all have different eligibility so it is a little bit of a sweeping statement, many CICs are doing very well securing grants as CIC............usually you have to be good and build a track record whatever type of structure you are.