Is anyone else frustrated by the fact that CICs with only 2 directors cannot apply for Lottery and Children in Need funding?
I would have thought that the asset lock would be assurance that the money will not be used unwisely.
Someone suggested that the Lottery is worried that 2 directors does not give a broad enough range of management experience, but in the commercial world a partnership can get finance.
However, the Lottery seems such a huge institution it might be hard to change their views.
Anyone else have views on this?
Hi Debbie! yes strange! as it seems to defeat the whole point of going down the CIC route! does anyone no the 'blue print' number of directors? and will a 'legal person' (a company) suffice from a funders perspective?
Up to now I have only seen problems regarding director numbers for companies with one or two, generally 3 should cover the basic concerns of funders (husband and wife team running off with the funds etc) In this respect the funders are really looking for independent governance within the company.
In a wider sense, how many Directors you should have should really depend on the scale of operations, if your a start up you should probably look to grow to six, opinion from some business guru's ive heard speak at events indicate it can get a bit unwieldy with more than 12 for larger, more established groups.
there are specific legal responsibilities for directors of companies that are listed in the Companies Act of 2006 that go beyond the requirement to ensure that directors are simply filing their annual returns (x3 sets of documents in the case of a CIC) and filing a corporate tax return.
If you used an incorporation agent to set up your CIC, I'd hope that they would have explained these to you? as well as the implications of not complying with them...?
I echo Heidi here. We recently obtained funding from Awards for All with two directors that live at the same address. We just had to stipulate that there was a third signatory and that the third, unrelated signatory had to always be one of the two signatories on a cheque. Once the bank confirmed that, they were happy. At that point, she wasn't a director, just our Children's Protection Officer, who was keen to be the senior contact on the Awards for All project. She's now a full director which might well help us with other bids. And yes, a Ltd by guarantee model is proving to be a good choice for us.
We were unsucessful with Children in Need just before the sucessful bid with Awards for All and we were not aware of their policy on this. We did get through to the telephone interview stage though, so I'm sure that they would have told us if that was the reason for rejection. Not that the rejection letter was very helpful to us. (A list of twelve common reasons for rejection pick one to suit...)
The joys of fundraising!