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How to turn from a committee run provision to a CIC


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We are a committee run provision struggling along and now need to look at an alternative....Cic looks like an option does anyone know anything about it......

 

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  • 5 months later...

Have looked at the above as we are sort of in the same position, a parent committee pre-school which no parents seem to have the time or inclination really to join the committee, but is not the CIO sort of the same thing though as it seems to say you need trustees to run? is that not just the same as parent committee members but under a different name? Or am I just reading it wrong? lol

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I created a CIC - Community Interest Company - no need for a committee/trustees - just me - I was originally the manager of a committee run - bought it and created a Ltd Co but the Parish Council I rent land from didn't like the fact I was Ltd so it was very easy to change to CIC - the only difference being the business is 'not for profit' - as if we are ever going to make a profit!!

I held a EGM and the parents agreed to 'sell' the business - it was then independently valued and with the cost of staff redundancies taken into account I paid the valuation to take over the business.

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I created a CIC - Community Interest Company - no need for a committee/trustees - just me - I was originally the manager of a committee run - bought it and created a Ltd Co but the Parish Council I rent land from didn't like the fact I was Ltd so it was very easy to change to CIC - the only difference being the business is 'not for profit' - as if we are ever going to make a profit!!

I held a EGM and the parents agreed to 'sell' the business - it was then independently valued and with the cost of staff redundancies taken into account I paid the valuation to take over the business.

 

@Hopeytg - I'm actually in a similar position and wondering if you could share a bit more about your experience? Everything I've read suggests that as our pre-school is a registered charity following the PLA 2011 constitution, that we would have to return all assets to the Pre-school Learning Alliance, and that the new CIC would not be able to benefit from any funds in the bank. What happened to any cash reserves that you had? Who independently valued the business? Any insight would be lovely, thank you.

Edited by Mother_Goose
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Hi finleysmaid - can I ask which bit you feel is relevent to moving to a CIC? It seems to be addressing myths around the roll out of the 30 hour scheme, but I may be missing something.??

my sincere apologies I have posted the wrong link!!! (been a LONG day)

give me a minute and i'll try and find the RIGHT one! :blink:

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Mother Goose - we didn't have much in the bank and what was there paid for the valuation,solicitors etc on behalf of the committee. We came out of the PLA a while before we transferred partly because of the 'returning assets' but mainly because they had done nothing for us for years. The valuation was done by someone recommended by the solicitor. It took about 2 years to complete the whole process but worth it. Happy to help where I can

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  • 8 months later...
Just now, Rea said:

I've just resigned from the committee, I'm the chair. 

Out of the other committee members, 4 of them, only 1 has a child at the setting.

if we changed to a CIO, can the staff be the trustees and run the group?

You can have staff as trustees, but they cannot be the first trustees. I.e. you have to convert to CIO and then when it's all set up, vote the staff members on to the committee. I do believe you still have to have a certain percentage of 'family' members though. It would be worth checking out the standard CIO constitution from the PLA if you're going to use that one.

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i've ordered a PLA book about CIOs, I'll look for that constitution too, thanks.

nothing I've read tonight mentions staff and it's really to get around the family members issue that we're looking at changing. 

Soooo many years of struggling (and telling partial truths to the charity commission) has left me tired

 

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15 minutes ago, Rea said:

i've ordered a PLA book about CIOs, I'll look for that constitution too, thanks.

nothing I've read tonight mentions staff and it's really to get around the family members issue that we're looking at changing. 

Soooo many years of struggling (and telling partial truths to the charity commission) has left me tired

 

We're CIO and so I know for sure you can have staff (but only if they were staff before the change for some reason) as we're about to add some of ours. You can have a minimum of three committee members which helps a lot from the five, but I have a feeling it's still more than 2/3 who have to be family. Maybe a CIC would be better for you?

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i've ordered a PLA book about CIOs, I'll look for that constitution too, thanks.

nothing I've read tonight mentions staff and it's really to get around the family members issue that we're looking at changing. 

Soooo many years of struggling (and telling partial truths to the charity commission) has left me tired

Thanks MootherGoose.

I looked at the comparison list Manor had attached but it looks like we wouldn't be able to transfer our resources to the CIC. I'm booking in with our accountant to see what he can help us with ☺

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We too need to do something about this- I'm so fed up with limping along and I know we are now operating as we shouldn't be. We have 3 committee members all who are leaving in July (luckily one- our nominated person is back next year so has agreed to stay on) 

I do everything anyway, in fact I'm wondering what extra I would do if it was my own business- maybe the funding forms and waiting list, which is done by my deputy. But I do all the finances, we have a wonderful ex parent who audits them for us each year set all the policies etc etc. Just not sure what to do in its place- I dont want to own it, I want it to stay as a charitable concern but just dont want a committee. We havent even got minutes from last years AGM as our then Secretary disappeared before giving them to me and now cant be contacted!

Parents just do not have the time or inclination to be committee members in the proper sense nowadays.

I dont really know where to look or what is best to do. I know that within the next couple of years I will be retiring so am just a little concerned about what will happen then.  I suppose ideally I'd like to become a ??? with charitable status and myself and deputy as trustees/directors (call us what you will) but without having to lose our money or buy the preschool out. We are fairly healthy financially. 

Just not sure if i have the energy to start something like this, with everything else I have to do. 

Rea, I'd be really grateful if you could let me know how you get on. 

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