I run Morvargh Sailing Project; we are a CIC based in Plymouth taking young people sailing on a tall ship to gain life skills etc. Morvargh is a real family run organisation with the two directors being related.
We had our 10th birthday this year and looking forward we know that to grow, we need to get others involved and as such are thinking of creating a charity that sits alongside the CIC.
My understanding is that a charity can have the CIC as a member and as such we theoretcially keep a measure of control? I also believe that all funds from the CIC must flow downhill to the charity and not the other way round?
The advice I am looking for is what is the correct way of doing this? Currently the CIC sells places on sail training voyages to young people and if we ever make a surplus then this goes into reducing the cost of sailing. We support the Project finacially at the moment and run at a loss.
If we use the charity model we can access funds more easily (it is hard when both directors are related), accept gift-aid etc, and have a wider base of trustees that will help the Project grow.
Does anyone have any experience of this set-up?
My biggest stumbling block now is how to deal with the boat and wages and where that sits either in the CIC or the Charity. I am currently the vessels skipper and am paid (sometimes) on a per voyage basis.
Is it best to keep all operational stuff in the CIC and use the charity purely as a fundraising and grant giving arm that allows dissadvantaged young people to apply for funding to go on our trips?
Or is it best for the CIC to rent the boat to the charity for a peppercorn rent of £1 a year and run everything from the charity, although my thought there is I loose a measure of control?
I would be very interesting in everyones thoughts.