Community Interest Companies vs Charities

Strangely this week I seem to have had the same conversation with three organisations. All relating to the relative merits of establishing themselves as constituted community groups, community interest companies or registering as charities.

Pros and cons for each model. Community Interest Companies are relatively straightforward to establish - and are subject to light touch monitoring. CICs can operate on business principles, but must meet the charitable purpose test, with roots in local communities. CICs can pay their founders in ways that charities cannot (even under SORP 2005 guidelines). However, they do not have the tax breaks, or access to funding that charities do.

I'm setting up a CIC for one client, and then registering a parallel charity - which is the best of both worlds. Another is weighing up the options, and a third is embarking on charity registration (with help from Flourishing).

Thanks to Companies House and the CIC website/helpline. Very accessible advice, and helpful helplines!