What does a CIC offer that a non-charitable company limited by guarantee does not?
We recognise that companies can – and do – successfully use guarantee companies for CSR purposes. Nevertheless, there are a few things that, in our view, give CICs an edge over them: • CICs contain an in-built asset lock. It is possible to create a guarantee company with an asset lock, but it is not an intrinsic part of the format. • CICs can attract share capital as well as loan capital, and offer dividends. Guarantee companies can only raise capital by taking loans. Both may accept donations. • CICs are approved and monitored by the CIC Regulator, giving your community programmes an official stamp of approval. Non-charitable guarantee companies do not enjoy this endorsement. The CIC Regulator has said that regulation will be light-touch, with his powers of intervention being used only in extremis. So it seems unlikely that a CIC will have to ‘pay’ for this recognition by subjecting itself to stringent regulation. 2. Does taking profits from a CIC dilute the brand enhancement aspect o
