Community Interest Companies (CICs) have access to various funding options to support their social objectives and community projects. Here’s an overview of some key funding sources available to CICs:

1. Grants

• Local Authorities: Many local councils offer grants for community projects. Check with your local council for specific programs aimed at supporting social enterprises and CICs.
• Charitable Foundations: Numerous charitable organizations provide grants for projects that align with their missions. Research foundations that focus on community development, social change, or specific sectors relevant to your CIC.
• Government Grants: Various government programs may offer funding for community-focused initiatives. This can include national or regional funds targeting specific social issues.

2. Social Investment

• Social Investors: Some organizations specialize in providing loans and investments to CICs and other social enterprises. They typically look for projects that demonstrate social impact alongside financial sustainability.
• Community Investment Funds: These funds are designed to support local businesses and projects that have a positive community impact. They may offer loans or equity investments.

3. Crowdfunding

• Online Platforms: Crowdfunding platforms like Kickstarter, GoFundMe, or Crowdfunder allow you to raise small amounts of money from a large number of people. You can pitch your CIC’s project and offer rewards or incentives for backers.
• Community Shares: Some CICs opt for community share offers, allowing local people to buy shares in the company. This not only raises funds but also engages the community and fosters local ownership.

4. Loans

• Social Enterprise Loans: Some financial institutions offer loans specifically tailored for social enterprises, including CICs. These loans often have favorable terms and conditions, recognizing the social mission of the organization.
• Traditional Bank Loans: CICs can also approach banks for conventional business loans. However, securing these may depend on the CIC’s creditworthiness and business plan.

5. Sponsorship and Partnerships

• Corporate Sponsorship: Local businesses may be willing to sponsor your CIC’s projects in exchange for branding opportunities or recognition. This can provide funding and strengthen community ties.
• Partnerships: Collaborating with other organizations or NGOs can lead to shared funding opportunities. Joint projects may attract funding that individual organizations might struggle to secure.

6. Membership Fees

• Charging Membership Fees: If your CIC provides services or benefits to members, consider implementing a membership fee structure. This can create a steady income stream while engaging the community.

7. Fundraising Events

• Organizing Events: Hosting community events, workshops, or activities can raise funds through ticket sales, donations, or sponsorship. Engaging the community in fundraising can also enhance your CIC’s visibility and support.

8. Income-Generating Activities

• Selling Goods or Services: Develop income-generating activities related to your CIC’s mission. This could involve selling products, offering services, or charging for training or workshops.

9. Impact Investment

• Investors Seeking Social Impact: Some investors are interested in making a return on their investment while also supporting social causes. This can include venture capitalists or angel investors who are focused on social enterprise.

Conclusion

CICs have a variety of funding options at their disposal to support their social missions and community projects. Exploring multiple funding avenues can diversify income sources and enhance the sustainability of the CIC. It’s important to tailor your approach based on the specific goals and needs of your organization, and to engage with the community to maximize support and involvement.