Keeping Digital is now an officially registered CIC
Posted on 23rd September 2022 at 10:15
After forming in 2016 and growing to become Keeping Digital Foundation, providing digital making and digital inclusion services across North Yorkshire, Keeping Digital officially registered as a CIC.
We've created this handy page so you can find out more about what it means for Keeping Digital to move from being an unincorporated charitable organisation to a CIC.
What is a CIC?
Introduced in 2005 in the UK, a community interest company (CIC) is a type of company designed for social enterprises that want to use their profits and assets for the public good.
As a business, a CIC reinvests its surpluses to achieve its social objectives, rather than being driven by the goal of maximising profit for its shareholders or owners.
In order to register as a CIC, we had to apply with a statement of our social objectives along with a legal declaration that our assets can only be used for these purposes. This ensures strict limitations to how a CIC handles it's finances, ensuring it only benefits it's community.
How are we regulated?
Given the nature of a CIC, it's necessary that they are regulated to ensure that they operate in the interest of the community.
Every year, we must file an Annual Report with the CIC Regulator that explains how we are achieving our social goals and engaging with our stakeholders.
The report will be publicly accessible and will outline:
Our activities and how it benefited the community
Any payments to shareholders
Any paid performance-related interest
Any assets we have transferred for less than market value
The pay or other compensation of directors
How we have consulted with stakeholders
A CIC can be investigated by the regulator if it's no longer acting in the interests of the community or doesn't comply with the asset lock.
A CIC is designed to improve its target community. We are not driven by profit. Therefore, it's not possible for a CIC to convert into an ordinary limited company to be able to extract profit. However, we can convert into a incorporated charity in the future.
How does it work?
No directors at Keeping Digital are paid, and all of our team are volunteers, meaning that any funding and profits go straight back into our work and our communities, and never in the pockets of individuals.
Becoming a CIC, and being limited by guarantee, means we have no shares or shareholders and that people who fundraise for us, send us grants or donate to us can be ensured that their money goes into benefiting our services and allowing us to help more people.
A spokesperson from the Keeping Digital Foundation, North Yorkshire’s leading digital inclusivity charitable organisation, provided this comment on this announcement:
“It's incredibly exciting to be able to announce that we are now a CIC, and we are delighted that the community interest company regulator has accepted our application.
"Since 2016, we have been working with our local community and providing valuable services that not only help provide digital education to young people, but also working across York to ensure that all residents have the option to advance their technology skills and to stay connected.
"We've made it through some of the most challenging years, with the pandemic forcing us to suspend all of our services in 2020. As the UK deals with economic hardship and a rising cost-of-living, we are seeing that as our services become more and more in demand as we help residents access support and services online, we are also seeing increasing costs to run each of these free services.
"Becoming a CIC means we can provide reassurance for our funders and also members of the public, so they can know that their donations only fund the amazing work our volunteers do! We're really excited for what is a busy year of services and even more announcements of new Digital Cafe locations and digital making activites.”
Founder and Community Coordinator
Tagged as: Keeping Digital Updates
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