As such, readers should also consult ‘A guide to charitable status’. Being a charity grants an organisation a legal status on top of its legal form (in this case, the Community Benefit Society). Societies are corporate bodies registered under the Co-operative and Community Benefit Societies Act 2014 (CCBSA2014). Charitable Community Benefit Society This guide sets out the main legislative and regulatory information to be aware of when setting up a Charitable Community Benefit Society. Community benefit societies (BenComs) conduct business for the benefit of their community.

The 2014 Act requires a community benefit society to “carry on a business, industry or trade” that is “being, or intended to be, conducted for the benefit of the community”. This means that it must have an overarching community purpose that reaches beyond its membership. Features of a Community Benefit Society • A membership organisation • Run for the benefit of the community, beyond its membership • A set of rules and registered with FCA • Can have charity status • Issues Community Shares in an enterprise • Surpluses and assets cannot be distributed to members (however interest

For a comprehensive guide to the range of legal structures available to those setting up a co-operative, please consult our Simply Legal publication.

when setting up a community benefit society.

Difference between a co-operative and community benefit society Co-operatives are formed primarily to benefit their own members, who will participate in the business of the society. The purpose of a community benefit society is to serve the broader interests of the community, in contrast to co-operative societies that serve the interests of members. How community benefit societies operate. Key characteristics of BenComs are as follows: They are set up with social objectives to conduct a business or trade. They should aim to meet the criteria set out in the International Co-operative Alliance's Statement on the Co-operative Identity . Profits are not distributed among members, or external shareholders, but returned to the community. A community benefit society is run primarily for the benefit of the community at large, rather than just for members of the society.