Charities' interest in becoming social enterprises growing5

Finance | Vibeka Mair | 15 Oct 2012

A new free guide for charities on becoming a social enterprise has been launched today by Pilotlight and Social Enterprise UK after a "significant increase" in enquiries from charities considering the route.

Gillian Murray, deputy chief executive of Pilotlight, a charity which brokers free business coaching for small charities, said:

“In the past twelve months we have seen a significant increase in interest from our partner charities about becoming a social enterprise. With the cuts in local authority funding and changes in the way charities’ services are being commissioned it’s no surprise that charities are exploring the opportunities social enterprise can offer. We hope this free, practical guide will provide them with clear information so that they can make an informed decision.”

The guide examines various issues that charities should consider if they are thinking about becoming a social enterprise, ranging from cultural changes to legal structures. It also includes legal advice from charity specialist solicitors, Bates Wells & Braithwaite.

A spokeswoman for Pilotlight advised that SEUK will shortly be undertaking a survey within the charity sector to ascertain a more accurate picture of the level of interest in becoming a social enterprise and to decipher the barriers that exist for charities in doing so.

Directory: Bates Wells & Braithwaite | Pilotlight

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Elba34Holder
IT support
ERT
7 Nov 2012

All people deserve very good life and or just auto loan would make it better. Because freedom bases on money state.

[Reply]

Celia Richardson
Director of Communications
Social Enterprise UK
16 Oct 2012

Don't worry Geof, it starts by pointing out exactly that. There is no hard line. As you say, many charities have been trading for decades and many social enterprises take up and retain charitable status.

[Reply]

Matt Knopp
Director
Eastside
16 Oct 2012

Totally agree with the point above. All the charities we work with deliver public service contracts. Their challenge is to create cultural change in order to be better prepared; to become more "enterprise like" and know that its ok to see themselves as a social venture that can embrace enterprise and innovation. Charity is a specific governance term, social enterprise is a much wider term defining behaviours. This will surely only seek to confuse. I look forward to being enlightened.

[Reply]

Carl Allen
15 Oct 2012

Will these social enterprises will be charging for their goods/services instead of delivering the good/service free of charge at point of need?

[Reply]

Geof Cox
www.geofcox.info
15 Oct 2012

Oh dear! I hope the guide starts by pointing out that the idea of charities 'becoming social enterprises' is just another example of 'the emperor's new clothes'!
Most charities already trade, and thousands are already doing social enterprise very well thankyou. The last thing they need is more mystification of the 'social enterprise' label.
Creating a hard line between 'charities' and 'social enterprises' serves competing sector bodies, but does nothing to illuminate the real issues faced by charities trying to grow earned income streams.

[Reply]

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