What Is a CIC? And Why Did We Choose It
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What Is a CIC? And Why Did We Choose It
When people hear the word “company,” they think profit, targets, shareholders…..you know, someone at the top squeezing every drop out of the bottom.
A Community Interest Company (CIC) is none of that.
It’s a legal structure in the UK built for organisations whose core purpose is public good, not private gain. It’s still a company, registered at Companies House, regulated, and accountable, but the rules that govern it push it in a very different direction.
So what exactly is a CIC?
A CIC is defined under the Companies (Audit, Investigations and Community Enterprise) Act 2004, and it comes with three key features:
1. The Community Interest Test
A CIC must prove to the CIC Regulator that its activities benefit the community. Not in theory. Not in vague promises. In practice.
2. The Asset-Lock
Now, this is the heart of it.
An asset-lock means the organisation’s assets and income cannot be distributed for private profit. They must stay inside the organisation or be passed to another asset-locked body (like another CIC or charity).
In simple terms: No owners cashing out. No shareholders draining resources. Money stays where it belongs. With the community.
3. Transparency
CICs submit an annual Community Interest Report explaining what they’ve done, who benefited, and how funds were used.
It forces honesty, clarity, and purpose.
Why YouthThirst Chose This Structure
We didn’t pick a CIC because it sounds noble. We picked it because it protects the mission from being corrupted later.
1. The work we do can’t sit on a profit engine.
Supporting vulnerable people, housing, community reintegration… these are not industries that should bend to profit pressure. The CIC structure stops the organisation from morphing into something it never intended.
2. The asset-lock keeps us disciplined.
Every pound that comes in has one job: to flow back into programmes, support, and community impact.
The structure legally prevents drift. No quiet mission-creep. No “maybe we should commercialise this”. The guardrails are built in.
3. It lets us partner with credibility.
Funders, local authorities, donors, delivery partners like Lexify, under the Leadership of Theophilus Aigbogun, and volunteers take one look at “CIC with an asset-lock” and understand the commitment:
We are not here to enrich anyone. We are here to serve.
4. It gives the community ownership without requiring them to own the company.
People can trust that YouthThirst isn’t a personal empire. It’s infrastructure for social good. The legal structure makes that trust rational, not emotional.
In essence:
A CIC isn’t a charity. It’s not a private company. It’s a mission-first organisation with legal teeth.
YouthThirst chose it because it aligns with what we stand for: Protection of purpose, transparent impact, and the guarantee that the work always comes before the wallet.
This structure keeps us accountable. It keeps us focused.
And most importantly, it keeps the community at the centre…..exactly where it should be.
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