There are numerous structures that a Social Enterprise may take: a charitable company or trust; a not-for-profit company such as a company limited by guarantee, community interest company, an industrial and provident society or a community amateur sports club, for example. We help clients choose the most suitable form and give individuals guidance on the implications for them as trustees or directors.
Apart from the legal constraints (covered in our summary of formation issues) other factors may come into play. The promoters may want local community involvement, but only on policy rather than day-to-day management. Funders may wish to be included, but without taking direct responsibility. Effective partnership (without a formal legal partnership) can be achieved through joint working arrangements.
On the borderline between charity and business, there are mutual companies, associations, fair trade companies, renewable energy companies and other companies that have both social goals and an economic purpose. We have for many years worked with such companies on raising money from the public through share and bond issues. For this purpose we are authorised and regulated by the Financial Services Authority and can approve financial promotions by such charities and enterprises.