What Is A CIC?
A CIC is a Community Interest Company. The provisions for them were created in the UK, in 2005. They allow for the formation of a limited company with special additional features for social enterprises that want to use their profits and assets for the community benefit.
As a business, a CIC reinvests its surpluses to achieve its social objectives, rather than being driven by the goal of maximising profit for its shareholders or owners.
Given the nature of community interest companies, it’s necessary that they’re regulated to ensure that they operate in the interest of the community. Every year, they must file an Annual Report with the CIC Regulator that explains how they are achieving their social goals and engaging with their stakeholders.
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This report is publicly accessible and must outline:
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The CIC’s activities and how it has benefited the community
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The CIC’s payments to its shareholders
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Any paid performance-related interest
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Any assets it has transferred for less than market value
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The pay or other compensation of directors
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How it has consulted with stakeholders.
A community interest company can be investigated by the CIC Regulator if it’s no longer acting in the interests of the community or doesn’t comply with statutory rules and regulations.
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Profits gained by the sale of any of our goods and services, including handmade furniture, financially supports our charitable organizations. See our projects page for more.