Adoption of the form by new-starts as well as conversion to it by existing enterprises has exceeded all expectation. The structure has also proven popular with new spin-outs, especially in health and social care. There are now over 16,000 CICs on the register.
In fact, over 220 new CICs were registered in December 2016 alone.
This is an extraordinary vote of confidence in the relatively new legal form.
And yet, the CIC Regulator receives only around £300,000 from government to meet its operating costs. By comparison, the Charity Commission receives around £20m, which equates to about £119 per charity on the register. The CIC regulator receives about £25 for each CIC on the register.
SEUK has been campaigning hard to get this disparity addressed and in a submission to the Treasury has called for the CIC Regulator to receive modest additional funding so that it can be the “enabling and effective regulator of this growing and inclusive form of business” that the sector wants and needs.
SEUK is also calling for government to create a new strategic plan for supporting the social enterprise sector. It has been over ten years since a national strategy for the sector existed.
→ Analysis: The rise and rise of community interest companies — interesting piece from June 2015 in Third Sector Online.