Quick Ways to Fund Your Community Interest Company

Starting a Community Interest Company (CIC) can be an exciting venture, but securing the necessary funds to kick things off can be a challenge. Fortunately, there are effective strategies to quickly inject money into your CIC. In this blog post, we’ll explore three top tips that can help you get started on the right foot.

1. Fundraising and Crowdfunding

The first step to getting money into your CIC is to organise a fundraiser or crowdfunding campaign. 

This approach allows you to directly engage your community and encourage donations. You might consider hosting a bring-and-buy sale, where people can donate items they no longer want, which you can then sell to raise funds. 

This method can easily help you generate a few hundred pounds, which can cover essential expenses like insurance and website costs.

Fundraising not only brings in immediate funds but also demonstrates to potential grant funders that you are active in your community. 

They often prefer to see that you have made an effort to raise some funds yourself before they consider funding your project. This proactive approach signals sustainability and shows that you are committed to your CIC’s success.

To maximise your fundraising efforts, consider creating promotional materials, such as T-shirts or flyers, to raise awareness about your CIC. Document your fundraising activities with photos for your website and social media platforms. 

This visibility can enhance your credibility and attract the attention of grant funders who appreciate community engagement.

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The Benefits of Setting Up a CIC

Establishing a CIC comes with several advantages:

  1. Social Impact: You can directly contribute to solving community issues and improving lives.
  2. Access to Funding: CICs can apply for grants and funding from various sources, including government bodies and charitable foundations.
  3. Flexible Structure: You have the freedom to design your organisation and its projects according to your vision and community needs.
  4. Personal Fulfillment: Working on projects you are passionate about can lead to a fulfilling career.

2. Selling Services or Workshops

The second tip is to sell a service or organise paid workshops. If you have a particular skill or expertise, consider offering workshops that people can pay to attend. This strategy not only generates income but also helps you establish connections within your community. For instance, if you are an artist, you might partner with local schools or community groups to run creative workshops.

By charging for these workshops, you can quickly bring in funds that contribute to your CIC’s operational costs. Moreover, showcasing that you have actively earned income through services can strengthen your grant applications. Grant funders often look for evidence of match funding, which is when you can show that you have secured funds from other sources to support your project.

For example, if you manage to raise £500 from workshops or other income sources, you can leverage this in your applications for larger grants. Suppose you are applying for a £10,000 grant; you can state that you have £500 in match funding, which indicates to funders that your CIC is not solely reliant on their support.

3. Apply for Grants Immediately

Once you have your bank account set up for your CIC, it’s crucial to start applying for grants as soon as possible. 

While you wait for your bank account to be established, you should begin drafting grant applications and planning your projects. This preparation can save valuable time once your bank account is operational.

When applying for grants, target funders that are known to support new CICs. Some funders, like the National Lottery Community Fund, are more open to funding startups. 

They typically offer grants up to £10,000, and although the assessment process can take around twelve weeks, having your application ready to go will allow you to enter the queue as soon as your bank account is active.

Additionally, consider applying to the Arts Council if your CIC has an artistic focus. They are known to support new projects, and you can even apply individually before formally establishing your CIC. 

This strategy can help you secure funding early on, which can be critical for your CIC’s sustainability.

Another potential funding source is the Heritage Lottery, which is also supportive of new CICs. Always aim for smaller grant pots initially, as these are generally easier to secure while you establish your CIC. Once you have some funding under your belt, you can then look towards larger grant opportunities.

Local Funding Opportunities

Don’t overlook local funding opportunities as well. Many community foundations and local councils offer grants specifically for new organisations. Researching these local options can unveil additional resources that may be available to you and could make a significant difference in your initial funding efforts.

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Conclusion

Securing funding for your Community Interest Company doesn’t have to be a daunting task. By employing these three strategies—fundraising, selling services, and applying for grants—you can quickly gather the necessary funds to launch your CIC and make a positive impact in your community. 

Remember, showing initiative and engaging with your community not only helps you financially but also enhances your credibility with grant funders.

For more in-depth guidance, consider exploring available courses or memberships that focus on grant funding and running a CIC effectively. With the right approach, you can turn your vision into reality and start making a difference.

For additional support, consider joining communities of CIC founders and accessing resources that can help you along the way. Your journey to creating change starts now!

Feel free to share your experiences or tips in the comments below. Let’s foster a supportive community for all CIC founders!

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Step 1: Define Your Mission and Objectives

Before you begin the formal process, it’s essential to define your CIC’s mission. Consider the community issues you are passionate about and how your skills can contribute to addressing them. Clear objectives will guide your activities and help attract funding.

Step 2: Choose a Name and Structure

Your CIC needs a unique name that reflects its mission. Ensure that it complies with the regulations set by the Companies House. Additionally, decide on the structure of your CIC, whether it will be limited by shares or limited by guarantee.

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