Legal structures for your group
You have said that your organisation will have voting members, that it will not be charitable, and that you wish to incorporate. You could choose from the following legal structures.
Bear in mind that, as a non-charitable organisation, some funders will not consider you for grants. These structures are designed for organisations that will earn most of their income through trade or investment.
Community Interest Company (CIC)
This is a type of limited company. It guarantees its not-for-profit status through an asset-lock, which commits the organisation to using all its surplus income for the benefit of the community. It can be run by volunteers or paid directors. It is a very common structure for social enterprises who will provide services for the community and generate income through trade. Some grant funding is available to CICs, but often only if the directors are volunteers.
Community Benefit Society
This is an organisation run by its members (on a one member, one vote basis). Members can fund the organisation by investing in community shares. It is a useful structure if your community wishes to take control of an asset, such as a local building. It must benefit the wider community, not just its membership.
Cooperative Society
This is an organisation run by its members (on a one member, one vote basis), for the benefit of its members. This benefit can be in different forms – for example a workers’ coop provides jobs for members, a housing coop provides housing, and a food coop provides access to low cost foods. The key is that members are in control, and run the organisation for their collective benefit.
Your route:
Voting members? Yes. Charitable? No. Incorporated? Yes.