Transcript Slide 1
Social enterprise
the changing landscape
John Maddocks
cipfa.org.uk
A definition …
‘… a business with primarily social objectives
whose surpluses are principally reinvested for
that purpose in the business or in the community,
rather than being driven by the need to maximise
profit for shareholders and owners’
Social enterprise:
a strategy for success
DTI 2002
cipfa.org.uk
A social enterprise …
Undertakes trading activities (> 50% income)
Has a social purpose
Profits are reinvested in social purpose (> 50%)
= social enterprise as per DTI 2002 report
Independent
Asset lock
Accountable for social goals
= social enterprise mark
Participatory structure?
= participatory social enterprise
cipfa.org.uk
Main types … some overlap …
Charity
Mutual
CIC
… but CIC and charity
do not overlap
cipfa.org.uk
Underlying legal structures
1. Company limited by shares
2. Company limited by guarantee
3. Industrial & Provident Society- for benefit of
community
4. Industrial & Provident Society- bona fide co-op
5. Charitable incorporated organisation (May 2012)?
6. Limited liability partnership
cipfa.org.uk
Options for new social enterprises
Legal structure
Charity
Mutual
CIC
Yes*
Yes
Yes
Ltd by guarantee
Yes
Yes
Yes
IPS Ben Com
Yes
Yes
No
IPS Co-op
No
Yes
No
CIO (2012)
Yes
No
No
Ltd by shares
*Now relatively uncommon for charities
cipfa.org.uk
Differences in …
Ownership
Control
Participation
Purpose
Regulation
Accounting
Accountability
Financing options
Some areas of taxation
Options for conversion
cipfa.org.uk
Initiatives supporting growth
cipfa.org.uk
Initiatives supporting growth
Open public services agenda
Community right to bid
Community right to challenge
Public services spin offs
Asset transfers
Academies and free schools
Review of co-operative law
Developments in social financing
Community budgets
cipfa.org.uk
Community budgets
Councils team up with all public services in their
patch to combine resources into a single locally
coordinated 'pool and save' pot
Four pilots:
Cheshire West and Chester
Greater Manchester
West London
Essex
cipfa.org.uk
SIB - Peterborough example
Payments
based on
% reduced
offending
Social investors
£5m over 6 years
Ministry of Justice
Social impact partnership
Reduction in re-convictions
Funding for programme
‘One Service’
St Giles Trust
Ormiston Trust
YMCA & SOVA
Others as required
3,000 prisoners under 12 months sentence
cipfa.org.uk
Social enterprise examples
cipfa.org.uk
Iceni Partnership
Charity (company limited by guarantee)
Manages:
community centre
assembly rooms
business units
> £100,000 income
Mostly earned
income
Strong volunteer
involvement
Charity
cipfa.org.uk
Jesmond Community Leisure
Charity (Company limited by guarantee)
Runs swimming pool in Newcastle
> £500,000 income
Nearly all
earned
income
Charity
cipfa.org.uk
Salford Community
Leisure Ltd
Charity
Mutual
IPS for benefit of the community (mutual & charity)
Sport, leisure, heritage and library services
Established 2003
Manages 50 premises
Members are users,
its staff and local residents
Staff trained in
‘co-op values’
cipfa.org.uk
Cheviot Care
Mutual
Company limited by guarantee
Employee owned co-operative
Provides home care services
Previously worked for Northumberland Council
4 workers
cipfa.org.uk
North West
Housing Services
IPS bona fide co-operative
A secondary co-operative
Provides professional services to:
housing co-operatives
housing associations
leaseholders
social enterprises
Over 40 member
organisations
Mutual
cipfa.org.uk
Isle of Sky Ferry
Mutual
CIC
The last manually-operated turntable ferry
Owner retired
Residents created the Isle of Skye Ferry
Community Interest Company
Bought ferry with grants from Big Lottery and
Highlands and Islands Enterprise
£120,000 income
5 staff
cipfa.org.uk
Wellbeing project
CIC
CIC (company limited by shares)
community based activities aimed at improving
mental wellbeing
run self help groups, training sessions,
educational programmes, and hobby and
interest groups
£140,000 income
cipfa.org.uk
So … what does this mean for you?
What social enterprises will you work with?
Do you have a checklist or criteria you
apply when deciding?
What services or products do you offer
social enterprises?
Are there any new services or products you
could develop?
Are there opportunities
for you to partner with
others to provide support?
cipfa.org.uk
Social enterprise checklist
cipfa.org.uk
What is a social
enterprise?
Types of social enterprise
Legal structures part 1
Legal structures part 2
Financing
Charity trading
Tax and social enterprise
Governance
Tupe
Considering options
[email protected]