Many people do not realise that not for profit does not mean that the organisation is not profit making. In order to survive, social enterprises need to be turning a profit to sustain their social, environmental or other goals.
At CCF we have identified that social enterprises throughout Yorkshire are often neglected from a tax planning point of view, perhaps tax planning for social enterprises is considered a taboo subject.
Social enterprises have all the same issues as standard businesses, paying staff, paying the directors and minimising their corporate tax liability, however they also can have a whole host of other issues such as dealing with volunteers and grants.
We see a lot of social enterprises set up by people who need to earn a living, but who also want to support social or environmental causes. This is often done via a community interest company, which is legally the same as an ordinary company, however has one significant difference, there is a restriction on the amount of dividend that the shareholders can take out (if the company is limited by shares) and a restriction on removing assets from the company.
What we aim to do is help these organisations achieve a balance between achieving their company's social aims, whilst supporting the stake-holders on the tax side of things. This is achieved via our specialist tax knowledge which ensures we are legitimately ensuring these types of organisations are maximising the funds that they are keeping for their social purpose.