The answer to Community Interest Company (CIC) vs Charity CIO depends on what you want to achieve and there are other alternatives to setting up a charity. This resource explains the difference between a CIC and charity and helps you to decide if a CIC or charity would be best, but also provides other non profit alternatives to setting up a CIC or charity.
Most people start by looking at the different legal structures but the answer to Community Interest Company (CIC) vs Charity CIO depends on what you're trying to do and there are alternatives to setting up a charity. A CIC is not a charity, so this resource explains the difference between a CIC and a charity and helps you to decide if a CIC or charity would be best. It aslo also provides other non profit alternatives to setting up a CIC or charity CIO.
Setting up and running any type of non profit, be that a charity or CIC, involves time and workload, so here are some options to avoid that.
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To access help and resources on anything to do with setting up a charity, CIC or any other type of non profit, click the AI Bunny icon in the bottom right of your screen and ask it short questions, including key words. Register, then login and the in-system AI Bunny is able to write funding bids and download 30+ charity policy templates as well.
Here are some key questions you need to ask in order to decide if you should set up either a CIC or charity.
In summary, A CIC is much quicker to set up and more flexible but a charity is better for fundraising and enjoys a range of sometimes substantial charitable tax reliefs a CIC does not. Neither is better than the other - it's a case of which would best suit what you want to do?
This infographic shows you visually the most common types of non profit and the pros and cons of each.
However, by far the 2 most common choices are a CIC Limited By Guarantee or a registered charity, usually a Foundation CIO.
Here's the index for our Non-profit Start-up Toolbox that has a series of toolkits for everything you'll need including registering with Companies House, the Charity Commission and/or HMRC, Gift Aid, conversions and how to open a bank account.
The line between charities and private business is becoming more blurred and being an ethical company can have real commercial benefits, including improved customer perception and greater staff engagement. There are a range of options.
A registered charity ourselves, we provide 8 online health checks, the huge information hub, Quality Mark and 3 online directories. It works for any non profit, not just charities.
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To access help and resources on anything to do with running a charity, including funding, click the AI Bunny icon in the bottom right of your screen and ask it short questions, including key words. Register, then login and the in-system AI Bunny is able to write funding bids and download 30+ charity policy templates as well.
I am neither a qualified accountant, nor a lawyer, so am not competent to provide professional advice, so this is simply a layman's guide to aid understanding. Moreover, I write my guides for everyone, so these cannot be specific to your organisation. If you need professional advice, you should seek it, as my guide is no substitute for this. To find professional pro bono legal advice, register then login to Help Finder and use the HR and legal serach category. Everything is free.