Quick Answer: Can A CIC Make Profit?

Can a CIC apply for lottery funding?

Any of these different types of community interest company can potentially apply to The National Lottery Community Fund, so long as they meet our basic requirements for any applicant organisation.

The basic things you need to have are: A governing document (usually for a CIC this would be your Articles of Association).

Can you sell a CIC company?

Agreed the Asset Lock does make it harder to sell a CIC, but part of that reason is they aren’t very attractive to the large corporations who can strip out the social mission of non-CICs. … One point that I would like to make that is nearly always misunderstood, you CAN sell your CIC shares for a profit.

How do I close my CIC company?

A CIC is only allowed to cease being a CIC by dissolution or by converting to a charity, which means that once a company has become a CIC it cannot become an ordinary non charitable company.

Can a CIC be a CASC?

YES ( Community Amatuer Sports Club) The governing docs will have to be written carefully, and not all CICs will qualify, but in principle there’s no reason why an amatuer sports club cant be a CIC and a CASC. Confirmed with HMRC 27th July 2010.

What is a CIC Asset lock?

The asset lock means that a CIC can only transfer assets: for less than market value, to another CIC or asset-locked body (such as a charity or a similarly asset-locked community benefit society); or.

Can a CIC own property?

The CIC or charity can own property, and rent space to the other. … The charity would be eligible for a lot more trusts and foundations that only give grants to registered charities, as well as being eligible for gift aid on donations.

Can a CIC have volunteers?

Many social enterprises and CICs enjoy the contribution made to their work by volunteers.

Can a community interest company make a profit?

A community interest company (or CIC) is a special form of non-charitable limited company, which exists primarily to benefit a community or with a view to pursuing a social purpose, rather than to make a profit for shareholders.

Can a CIC pay its directors?

A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.

Do CIC companies pay tax?

Does a community interest company (CIC) Pay Tax? A community interest company (Or CIC) is liable to Corporation tax as a company. This applies to all it’s Trading profits, Investment Income and any gains. It’s an asset locked body that must ensure any profits/assets are used for the benefit of the community.

Can a CIC accept donations?

A CIC will typically not be dependent on donations and fundraising as it will have a mix of income including contracts, trading income and grants. Whereas a charity is more likely to be dependent on grants, donations and fundraising for a larger proportion of its income.

How many directors should a CIC have?

two directorsNumber of directors A CIC limited by shares can have just one director and shareholder. A CIC limited by guarantee should have at least two directors (trustees). Some banks or funding bodies will prefer there to be at least three.