Can you raise money for a CIC?

Can a CIC fundraise? This is a question that often arises concerning Community Interest Companies (CICs). The answer is yes, CICs do have the capacity to fundraise.

However, the sources of fundraising for CICs are limited compared to charities. CICs can seek funding from charitable trusts and foundations. But, generally, they may not be as successful in their fundraising efforts as charities.

This is because funders may have specific requirements that CICs must meet in order to receive funding. These requirements may be more stringent for CICs than for charities, making it more challenging for them to secure funding.

Can a CIC convert to a charity? This is another common question regarding CICs. The answer depends on the type of CIC. A CIC limited by guarantee has the option to convert to a charity.

This process involves meeting certain criteria and following specific procedures to ensure that the CIC meets the requirements for becoming a charity. However, a CIC limited by shares cannot convert to a charity. This restriction is due to the different legal structures and purposes of CICs limited by shares and charities.