Voluntary, community, and social enterprises
According to the National Lottery Fund a voluntary, community, and social enterprises or VCSE means an incorporated voluntary, community or social enterprise organisation which serves communities solely within England and which is either: A charity, Community Interest Company or Community Benefit Society, registered with the relevant registry body; or an unregulated organisation which:
- has a clear social mission which, in the reasonable opinion of the Fund Administrator, is analogous to a recognised charitable purpose;
- distributes less than 50% of post-tax profits and reinvests at least 51% surpluses into pursuing its social mission;
- has a constitutional or contractual lock on its social mission, its dividend and surplus distribution policy and “asset-lock”;
- carries out, or has ambitions to carry out, trading activities in support of and which are causally linked to its social mission;
- offers its products and services for general public benefit without restrictions and barriers, such as affordability;
- is open to undertaking an independent social impact audit;
- has remuneration and benefits policy which it is willing to make publicly accessible, and which is reasonable and proportionate relative to the market practice for VCSEs;
- in the case of a sale of the organisation, the directors make best efforts to preserve the social mission under new ownership;
- can demonstrate that no private benefit will arise from the Grant; and
- no state aid issues have been identified;
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