Community Interest Companies

[FBOAB]

Hi all!
Following on from the cash thread I can see a way forward for me at last. It would involve setting a cycle recycling business up around here to allow the people who can't afford the price of new bikes to get something that isn't a BSO.

Looking at the various schemes around the country, it seems that the majority are set up as community interest companies where (I think I've got it right) the profits go back into the company for the benefit of the wider community. I have no interest in making lots of money from this but as long as I can pay the rent, so to speak, I would prefer doing something that makes me feel as though I was helping out.

I did look into training, but in reality I enjoy mending and fixing things so why not put this to good use? Hence the idea.

As I'm on my own on this at the moment, I have no idea on how this works exactly (setting up, running, funding etc). I've looked into starting charities and it seems you need lots of people to be trustees etc so that's a bit of a non-starter (No friends - altogether now - ahh.).

It's taken me a while to find something that I feel I can really get my teeth into after trying lots of ideas out to see if they fit me so to all those who have ofered me advice on other ideas; a sincere thank you to you all.

Andy.

 

[Maz]

We have a couple of similar schemes here in Leicester; Cycle Magic and Bikes4u.
Both offer reconditioned bikes at very reasonable prices.

 

[dellzeqq]

there's at least one CCer who knows much more about this than me (actually I know next to nothing, but he is an expert) - I'll suggest that he gets in touch. If you send me your e-mail address I'll e-mail you the bunph that I received.

 

[garrilla]

A CIC is vehcile for the community. If you decided to stop would the CIC stop? If so, its not a commuity vehicle, but a private one with community privledges. They are really meant for community organisations that need a legal persona so they can accept an assett, such as a building or similar from a donor (usualy the council)

You can reinvest the profits through any legal form. There is no requirement for a private company limited by shares to pay dividends, that's just a convention. You could also do this as a sole trader. The whole 'social enterprise' movement is just a way of filtering funding down to groups that have some 'social goal.' Well actually a posh golf club that is owned and run by its members through company limited by gurantee would tick all the boxes of being a social enteprise, unless you're one of the people who runs a social enteprise.

However, if you are wanting to get grants from the public sector you may need to be a legal form that 'eases' their fears of risk. This will probably need take the form of a charity, CIC or company limited by guarantee. Getting the funding will be hard and will more likely frustrate in the short to medium term but any of these structures you will need some kind of board.

My own view is that if you can't make it pay without a grant subsidy then there's no demand for your scheme and all you have is a great idea for creating yourself a good job. I can't see why the txpayer should subsidise this.

 

[FBOAB]

there's at least one CCer who knows much more about this than me (actually I know next to nothing, but he is an expert) - I'll suggest that he gets in touch. If you send me your e-mail address I'll e-mail you the bunph that I received.

PM sent. Thanks.

 

[FBOAB]

A CIC is vehcile for the community. If you decided to stop would the CIC stop? If so, its not a commuity vehicle, but a private one with community privledges. They are really meant for community organisations that need a legal persona so they can accept an assett, such as a building or similar from a donor (usualy the council)

You can reinvest the profits through any legal form. There is no requirement for a private company limited by shares to pay dividends, that's just a convention. You could also do this as a sole trader. The whole 'social enterprise' movement is just a way of filtering funding down to groups that have some 'social goal.' Well actually a posh golf club that is owned and run by its members through company limited by gurantee would tick all the boxes of being a social enteprise, unless you're one of the people who run a social enteprise.

However, if you are wanting to get grants from the public sector you may need to be a legal form that 'eases' their fears of risk. This will probably need take the form of a charity, CIC or company limited by guarantee. Getting the funding will be hard and will more likely frustrate in the short to medium term but any of these structures you will need some kind of board.

My own view is that if you can't make it pay without a grant subsidy then there's no demand for your scheme and all you have is a great idea for creating yourself a good job. I can't see why the txpayer should subsidise this.

Very good points there. The idea to use a CIC is exactly that,; to accept assistance from councils in whatever form they can provide.
To adress the grants question; I have talked to Steve Kean at Back2Bikes and he suggests the use of a grant of some sort to assist in the establishing phase of the company - that's the path that he chose. The result is that B2B has changed from a council subsidised scheme to one that is now fully self suporting.

I do hope you haven't got the wrong end of the stick here. Allthough I need money to pay the rent the whole idea is to generate new cyclists with all the benefits that that will provide. As far as I can see no one has taken the initiative here as yet for some reason but the model I wish to follow has proven to be succesful around the country, especially in areas of deprevation; one of the target areas is one of the most deprived in the country with resultant poor health issues along with high levels of unemployment.

I have a skill that could be seen as transferable; I can mend things. I am trying to use what I can do for the benefit of the wider community. In this way, for the first time in my miserable existance, I can do something that makes me feel worthwhile..

 

[garrilla]

I actually do live in THE most deprived area of the country. I can assure you that here the local population are

a) not without the facility to get a bike as there are many people out and about on - the young on MTBs and older on roadies - and

there is not a shortage of available 2nd bikes as every charity shop usually has 1 or 2 outside for sale (£10 to £20) and several 2nd shops sell them including the guy that buys them from the police auctions and does them up.

There is no demand for the an additional service here, although I have no idea if that is the case where you are. What I do know is that some of the existing schemes start out with the very best of intentions but far from enabling the local deprived populace with cycles they become a cheap source for students and professional-class commuters. Nothing wrong with the latter two, I have been both, but neither worthy of subsidy imho. And for all these subsidised recycling schemes (including those that sell new bikes) I often wonder what effect it has had on the existing stock of LBS.

And, finally, cycling, however fantastic a mode of transport, will not and can not solve either deprivation or the health consequences of poverty.

However, my skepticism not withstanding, I do wish you the best of luck.

 

[Hilldodger]

I have talked to Steve Kean at Back2Bikes and he suggests the use of a grant of some sort to assist in the establishing phase of the company - that's the path that he chose. The result is that B2B has changed from a council subsidised scheme to one that is now fully self suporting.

I'd be very suprised if B2B doesn't have some buy-in from the local council - reduced rates, low cost rent etc.

None of the bike recycling projects I know or work with across the country are self supporting as a stand alone project - they all run other activities to subsidise the recycling.

 

[FBOAB]

It's true, I've seen the figures! While it's no money making venture by any means and is charity based with the resultant benefits of rates reduction it does seem to hold it's own. Steve seems very good at seeking outside funding sources though and he said that schemes can fail because they are afraid to ask for money from the most unlikely of sources!

I for one are in full admiration of everybody who can create a scheme such as B2B, CycleMagic et al and make it work, by whatever means; the dawning realisation to me is that, as one person, I cannot work out a way of starting such a project on my own.

Anyhoo. Back to the old drawing board. I wanted to change my life and do something that was worthwhile instead of the same old drudgery that had been ruining my head for as many years as I can remember. (I think I'm having a bit of an off day. Money is tight and I have that incredible sinking feeling...)

 

[Hilldodger]

You'll find a way.

It has taken Cyclemagic 10 years to get where we are now, but we started small and knew we'd get there in the end.

 

[FBOAB]

Thanks. Just feeling a bit iffy today. If at first you don't succeed and all that

 

[Arch]

And, finally, cycling, however fantastic a mode of transport, will not and can not solve either deprivation or the health consequences of poverty.

Really? It can't provide a virtually free way for someone to travel to a job or education that is just a little too far to walk? It's a small thing, but small things all add up.