Community Benefit Society - Revision history

Adminwiki at 15:31, 10 May 2026

2026-05-10T15:31:06Z

← Older revision		Revision as of 15:31, 10 May 2026
Line 1:		Line 1:
	A Community Benefit Society (often abbreviated as BenCom) is a type of not-for-profit legal form designed to serve the community interest. Registered under the [https://www.legislation.gov.uk/ukpga/2014/14/contents Co-operative and Community Benefit Societies Act 2014], these societies operate on democratic principles and reinvest profits to benefit their community rather than for private gain. It is a popular choice for organisations that want to attract the support of a community by giving them ownership of key assets - such as pubs, landmark buildings and community shops.		A Community Benefit Society (often abbreviated as BenCom) is a type of not-for-profit legal form designed to serve the community interest. Registered under the [https://www.legislation.gov.uk/ukpga/2014/14/contents Co-operative and Community Benefit Societies Act 2014], these societies operate on democratic principles and reinvest profits to benefit their community rather than for private gain. It is a popular choice for organisations that want to attract the support of a community by giving them ownership of key assets - such as pubs, landmark buildings and community shops.

	Community Benefit Societies are registered with and regulated by the Financial Conduct Authority (FCA). BenComs are incorporated and therefore have legal personality, meaning they can enter into contracts and hold property in their own name. Some types of CBS are also eligible to apply for charitable status with OSCR, if they meet the charity test.		Community Benefit Societies are registered with and regulated by the [https://governancewiki.org.uk/wiki/Glossary#Financial_Conduct_Authority Financial Conduct Authority (FCA)]. BenComs are incorporated and therefore have legal personality, meaning they can enter into contracts and hold property in their own name. Some types of CBS are also eligible to apply for charitable status with OSCR, if they meet the charity test.

	==Key characteristics==		==Key characteristics==

Adminwiki: /* Registration requirements */

2026-05-10T15:25:50Z

Registration requirements

← Older revision		Revision as of 15:25, 10 May 2026
Line 32:		Line 32:

	==Registration requirements==		==Registration requirements==
	To register a Community Benefit Society with the FCA, an ~~organization~~ must:		To register a Community Benefit Society with the FCA, an organisation must:

	* Submit an application form		* Submit an application form

Adminwiki: /* Further resources and links */

2026-04-06T18:06:01Z

Further resources and links

← Older revision		Revision as of 18:06, 6 April 2026
Line 64:		Line 64:

	==Further resources and links==		==Further resources and links==
	Financial Conduct Authority (FCA) – [~~[Mutuals Registerav\|~~Mutuals Register]]		Financial Conduct Authority (FCA) – [https://mutuals.fca.org.uk/ Mutuals Register]

	FCA – [https://www.fca.org.uk/publication/forms/registration-of-new-community-benefit-society.docx Registration Guidance]		FCA – [https://www.fca.org.uk/publication/forms/registration-of-new-community-benefit-society.docx Registration Guidance]

Adminwiki: /* Funding and Shares */

2026-03-31T14:03:58Z

Funding and Shares

← Older revision		Revision as of 14:03, 31 March 2026
Line 49:		Line 49:
	* Not intended for speculative investment		* Not intended for speculative investment
	* Limited in interest payments (to ensure community focus)		* Limited in interest payments (to ensure community focus)
	* Members may be eligible for tax reliefs		* Members/shareholders may be eligible for tax reliefs

	Community shares have become a popular way for BenComs to finance start-ups or buy local assets.		Community shares have become a popular way for BenComs to finance start-ups or buy local assets.

Adminwiki: /* Funding and Shares */

2026-03-31T14:03:29Z

Funding and Shares

← Older revision		Revision as of 14:03, 31 March 2026
Line 44:		Line 44:
	==Funding and Shares==		==Funding and Shares==

	BenComs can seek investment by issuing community shares, a unique form of share capital that gives members a stake in the organisation without compromising ~~its social mission~~. These shares are typically:		BenComs can seek investment by issuing community shares, a unique form of share capital that gives members a stake in the organisation without compromising serving the community interest. These shares are typically:

	* Withdrawable (but not tradable)		* Withdrawable (but not tradable)

Adminwiki: /* Funding and Shares */

2026-03-31T14:02:41Z

Funding and Shares

← Older revision		Revision as of 14:02, 31 March 2026
Line 44:		Line 44:
	==Funding and Shares==		==Funding and Shares==

	BenComs can ~~raise capital~~ by issuing community shares, a unique form of share capital that gives members a stake in the organisation without compromising its social mission. These shares are typically:		BenComs can seek investment by issuing community shares, a unique form of share capital that gives members a stake in the organisation without compromising its social mission. These shares are typically:

	* Withdrawable (but not tradable)		* Withdrawable (but not tradable)

Adminwiki: /* Key characteristics */

2026-03-31T14:00:23Z

Key characteristics

← Older revision		Revision as of 14:00, 31 March 2026
Line 23:		Line 23:
	'''5. Charitable status'''		'''5. Charitable status'''

	Community Benefit Societies that have charitable objects an appropriate asset lock and exist for public benefit, may apply for charitable ~~status~~ from [[Office of the Scottish Charity Regulator (OSCR)\|OSCR]].		Community Benefit Societies that have charitable objects an appropriate asset lock and exist for public benefit, [[Registering as a Charity\|may apply for charitable statu]]s from [[Office of the Scottish Charity Regulator (OSCR)\|OSCR]].

	'''6. Profit distribution'''		'''6. Profit distribution'''

Adminwiki: /* Key characteristics */

2026-03-31T13:59:40Z

Key characteristics

← Older revision		Revision as of 13:59, 31 March 2026
Line 23:		Line 23:
	'''5. Charitable status'''		'''5. Charitable status'''

	Community Benefit Societies that have charitable objects an appropriate asset lock and exist for public benefit, may apply for charitable status from OSCR.		Community Benefit Societies that have charitable objects an appropriate asset lock and exist for public benefit, may apply for charitable status from [[Office of the Scottish Charity Regulator (OSCR)\|OSCR]].

	'''6. Profit distribution'''		'''6. Profit distribution'''

Adminwiki: /* Regulation and reporting */

2026-03-31T13:59:07Z

Regulation and reporting

← Older revision		Revision as of 13:59, 31 March 2026
Line 61:		Line 61:
	* Details of share capital and membership changes		* Details of share capital and membership changes

	If the society is also a charity, it must report to OSCR in the same manner as all charities.		If the society is also a charity, it must report to [[Office of the Scottish Charity Regulator (OSCR)\|OSCR]] in the same manner as all charities.

	==Further resources and links==		==Further resources and links==

Adminwiki: /* Key characteristics */

2026-03-31T13:58:19Z

Key characteristics

← Older revision		Revision as of 13:58, 31 March 2026
Line 13:		Line 13:
	BenComs operate on the principle of one member, one vote, regardless of how many shares a member holds. This ensures fair and equal participation in decision-making.		BenComs operate on the principle of one member, one vote, regardless of how many shares a member holds. This ensures fair and equal participation in decision-making.

	3. Community shares		'''3. Community shares'''

	Community Benefit Societies are a popular model for organisations seeking to raise finance from local people through share issues. See below.		Community Benefit Societies are a popular model for organisations seeking to raise finance from local people through share issues. See below.

	4. Asset lock		'''4. Asset lock'''

	Most Community Benefit Societies include an asset lock (most commonly a statutory asset lock, but can also be voluntary) in their rules, meaning that assets cannot be sold or transferred for private profit distribution. On dissolution, assets must be used for the community benefit or transferred to another similar organization.		Most Community Benefit Societies include an asset lock (most commonly a statutory asset lock, but can also be voluntary) in their rules, meaning that assets cannot be sold or transferred for private profit distribution. On dissolution, assets must be used for the community benefit or transferred to another similar organization.

	5. Charitable status		'''5. Charitable status'''

	Community Benefit Societies that have charitable objects an appropriate asset lock and exist for public benefit, may apply for charitable status from OSCR.		Community Benefit Societies that have charitable objects an appropriate asset lock and exist for public benefit, may apply for charitable status from OSCR.

	6. Profit distribution		'''6. Profit distribution'''

	Surpluses are primarily reinvested or used for community benefit, with only limited interest payable on share capital. If a BenCom is a charity, it must [https://www.oscr.org.uk/media/5dhj3ufz/consultation-response-guidance-on-fca-registration-function-under-the-co-operative-and-community-benefit-societies-act-2014.pdf follow the rules set out by OSCR when considering paying interest] to members/investors.		Surpluses are primarily reinvested or used for community benefit, with only limited interest payable on share capital. If a BenCom is a charity, it must [https://www.oscr.org.uk/media/5dhj3ufz/consultation-response-guidance-on-fca-registration-function-under-the-co-operative-and-community-benefit-societies-act-2014.pdf follow the rules set out by OSCR when considering paying interest] to members/investors.