Charity Paying for reducing homeless problem

[Supercan]

Hi.

I have a potential business idea that would reduce the number of homeless people on the street, there is more detail than this but I dont want to give away the full details until im sure what i'll do.

My question is, there is no sort of business return in this, ie there is no point me investing just for the good of my heart because I wont get any money back; but do charities or other bodies invest in this kind of thing? so that I could potentially make a business from this idea?

 

[cjd]

Have a look at CICs - Community Interest Companies

 

[Supercan]

Have a look at CICs - Community Interest Companies

Thanks for that, never come across that before. From my understanding though, CIC's are basically for providing something to the community rather than private gain/individuals, so if this is the instance, would it be done for "free" or have I interpreted it?

 

[Scalloway]

There is some information on CICs here

http://www.guardian.co.uk/society/2009/dec/01/setting-up-community-interest-company

A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.

 

[Billmccallum]

Thanks for that, never come across that before. From my understanding though, CIC's are basically for providing something to the community rather than private gain/individuals, so if this is the instance, would it be done for "free" or have I interpreted it?

If your idea cannot mke a profit (below) , how can you make a private gain? (above)

Hi.

I have a potential business idea that would reduce the number of homeless people on the street, there is more detail than this but I dont want to give away the full details until im sure what i'll do.

My question is, there is no sort of business return in this, ie there is no point me investing just for the good of my heart because I wont get any money back; but do charities or other bodies invest in this kind of thing? so that I could potentially make a business from this idea?

 

[ethical PR]

Bill I think what he's saying is he has a concept that would help those who are homeless. He wants to make money from the concept by charities funding it.

 

[SpecialBranchTrees]

In the main, charities don't fund, they are funded. Forward thinking charities may get involved with trading opportunities if there is a return in it FOR THEM. CIC's can offer some profit distributing opportunities to individual investors, but that implies that there is a profit to distribute in the first place and, to be honest, the return is more in the triple bottom line (economic, social, environmental) than just the economic, ie you don't invest in a CIC to make money, you do it to make a difference.

If SuperCan is looking to make money out of his idea, the best way would be to set up a charity (and that's no easy task), raise the funding and become an employee of the charity. It won't be 'his' to control and he won't even be a member of it, but he could get a living wage.

 

[tj1979x]

In the main, charities don't fund, they are funded. Forward thinking charities may get involved with trading opportunities if there is a return in it FOR THEM. CIC's can offer some profit distributing opportunities to individual investors, but that implies that there is a profit to distribute in the first place and, to be honest, the return is more in the triple bottom line (economic, social, environmental) than just the economic, ie you don't invest in a CIC to make money, you do it to make a difference.

If SuperCan is looking to make money out of his idea, the best way would be to set up a charity (and that's no easy task), raise the funding and become an employee of the charity. It won't be 'his' to control and he won't even be a member of it, but he could get a living wage.

My experience has been quite the opposite, where there are many charities that fund good ideas. Many charities exist soley for the purpose of helping other charities apply for funding or in awarding the funding directly

 

[SpecialBranchTrees]

Hi TJ - you're thinking of Charitable TRUSTS which are, indeed, set up for often the sole purpose of distrubuting funds for good causes. These also have to get their funds from somewhere, ie they are funded, from legacies, fundraising activities etc. The trusts usually have it laid down in their charitable objects the type of activities they can fund.

Those charities that exist to help other charities in non-funding ways (advice, umbrella organisations etc), those with 'indirect beneficiaries' (they help charities that help beneficiaries) live by the same rules as charities with direct beneficiaries - the 'principal' activists (CEO, Manager, employees) cannot be members or directors of the charity. Members and/or directors of a charity can take no income for fulfilling these roles. They can be paid expenses and for specific services rendered, but this can get a bit tricky so many charities avoid it.

In general, it's a minefield but with CIC's the rules are slightly different and directors CAN be paid for being directors and can also be shareholders taking (capped) dividends.

 

[tj1979x]

Ah, thanks. It all sounds a noble idea but maybe just a little too complicated.