Why social enterprise? A guide for charities.
Charities can diversify their income streams by looking to social enterprise. This guide offers practical tips and advice on the issues to consider before trading. October 2012.
As charities face a tougher funding environment, this free guide aims to help those trying to diverisfy their income by becoming a social enterprise.
The guide has been produced by Social Enterprise UK (SEUK) and Pilotlight, a charity that brokers free business coaching to small charities and social enterprises to help them grow and become more sustainable. It also includes expert legal advice from charity specialist solicitors, Bates Wells & Braithwaite.
It highlights that charities don’t always need to change their legal structure and emphasises that many social enterprises remain as registered charities. For some charities a social enterprise will be just one part of their activities that will enable them to make a surplus so that they can grow and invest.
The guide explains where charities can trade without structural change and where they will need to set up trading companies. It acknowledges that some charities may find it hard to make the change from grant funding to running a business, selling services or products at a profit and advises them to have a robust business plan in place.