What is the 'community interest test' and what is it meant to achieve?
Community interest is the heart of the CIC and the community interest test is what differentiates CICs from other not-for-profit organisations. Demonstrating community interest can be of value to those seeking grant funding or philanthropic investment.
The test is intended to be light touch. To become a CIC, an organisation would need to satisfy the regulator that its purposes could be regarded by a reasonable person as being in the community or wider public interest. It will also be asked to confirm that access to the benefits it provides will not be confined to an unduly restricted group.
What type of organisations would satisfy the community interest test?
Each application is examined and assessed on its own merits. This means that the Regulator must be satisfied that a reasonable person might consider that the activities of that enterprise/business will be carried on for the benefit of the community. To enable the Regulator to make this decision, all applicants for CIC status must make a Community Interest Statement indicating why they believe that they satisfy the test. In addition, the constitution (articles of association) of a CIC must comply with the relevant legislation. Please note that Political activities including campaigning are specifically prohibited.
If you would like to speak to someone please do not hesitate to contact our Managers, Steve Smith, on steve.smith@plummer-parsons.co.uk or Luke Summerford on luke.summerford@plummer-parsons.co.uk . Alternatively you can call the Eastbourne office on 01323 431200 and ask for either.
