Blank Cheque currently exists as an Unincorporated Association. This means that Laura Asare and I are just two people with a shared goal, acting together to deliver work. We are not required to register with HMRC, Companies House or with the Charity Commission, we work as we see fit (and make sure to pay our individual taxes!) The benefit of this is that we are only accountable to our participants, our partner(s) (most recently, Hibiscus Initiatives), our funders (Arts Council England), and ourselves. The drawback is that without a constitution and a legal framework, we are excluded from most funding sources: grants from Trusts & Foundations, Public Funding, income from trading, commissions, and investment – and we can’t get a bank account. (Up to now, Arts Council England have provided funds to me as an individual artist, not to Blank Cheque as an organisation).
My research project involves identifying the best legal framework for Blank Cheque and other companies like us, and it’s complicated to shift from one to another, so we’re not jumping into anything just yet. I’d first like to explore what we wish the ideal framework could be – even if it doesn’t exist yet. Here are some ideas:
Low admin – we don’t want to be bogged down with onerous reporting and administration that requires time and resource we don’t have, and which draws us away from delivering our work and making the impact that we seek to achieve
Ensuring our members and/or participants are intrinsic to design and delivery but also ensuring Laura and I are able to hold director roles and be paid for our work (moving away from the ‘side hustle’ model!)
Income options – we want to have all income sources available to us so that we can choose the best way to sustain ourselves, which may change as years (and government policies) go on - this incudes funding and having the option to generate income through the services we provide (trading)
A Board of Advisors rather than a Board of Trustees – a group of people we can reach out to regularly so that we are always taking a human-centred approach but who are not financially liable for Blank Cheque.
A framework that enables us to access tax benefits as a result of making positive social and environmental change through our work
As much as Laura and I are ambitious for Blank Cheque, we also don’t want to bite off more than we can chew, so we want a framework that suits our small size and level of operation.
Gov.uk offers the following options for those wishing to set up a social enterprise, which they define as ‘a business that helps people or communities’:
Unincorporated Association - a type of charity, usually for voluntary community groups, does not need to register
Business Partnership - partners share profits and losses
Sole Trader – a self-employed individual
C.I.C. – Community Interest Company (benefits the community vs private shareholders)
C.I.O. – Charitable Incorporated Organisation (in the same family as a Registered Charity)
Limited Company by shares (profit-making) or by guarantee (non-profit) – the company is legally separate from the people who run it
Cooperative – the business is run by member-owners who each have a voice and a vote for all decisions
Each of these frameworks has their advantages and disadvantages, which is why learning about them in-depth is worthwhile (it’s too much for me to detail in this blog entry, but I will elaborate pros & cons in future!)
A key part of my research is to now learn what decisions other theatres of social change have made about their legal frameworks, what the framework does to support their work, and where it’s less helpful. I’m in the early stages of developing a semi-structured interview protocol and look forward to speaking with some of my peers on the issue. Meanwhile, I know there are a few things Blank Cheque can do to get ready for legal status:
Be 100% clear on our mission, vision, and social objectives
Write a constitution – a governing document about what we do, why, and how we operate
Develop company policies – safeguarding, confidentiality, codes of conduct (to name a few)
Undertake professional development and training – including trauma-informed, best practice, and sector knowledge
Explore and identify the ethics of our work so we know what kind of partners we want to collaborate with, what bank we want to open with, and what kind of money we’ll accept (e.g. social impact investment?)
Network with funders, policy-makers, community networks, artists, and women’s centres
Continue making and sharing work
Support our peers in the sector
For those out there with grass-roots social change companies, I hope this blog entry helps to start simplifying a daunting process - please do reach out if you want to put heads together.
PS: Just today I took part in a session with Social Enterprise UK who helpfully pointed me in the direction of more useful resources. Do have a look – there are some variations on the frameworks I’ve listed above:
Good Finance: Legal Structures for Social Enterprises
School for Social Entrepreneurs: Selecting a Legal Structure