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]