CIC or CLG how do I decide?

[Geneticsbunny]

I want to set up a holiday club aimed at children with additional needs. I have done some research and have identified that I probably need to register as a cic or a clg with an asset lock so that I can access grants from charities however I want this to be a long term sustainable business that can also survive without funding from grants if it needs to. My model involves providing childcare funded by parents at a day rate comparable to non specialist childcare and then topping that up if the child needs extra support on top of what we can already provide.

I guess that my worry is that being a cic might limit the business in some way? But it does look like it might be a lot easier to set up than a glc?

The guidance on this for once is actually quite helpful: https://www.gov.uk/government/publications/community-interest-companies-how-to-form-a-cic/community-interest-companies-guidance-chapters#:~:text=Directors%20may%20be%20paid%20remuneration,be%20more%20than%20is%20reasonable

The things I think you’d have to really focus on for a CIC that you wouldn’t need to be quite so mindful of with s CLG are:

• Writing a robust statement of the intended community benefits that would pass the community benefits when you set it up and each year going forward. What happens for example, if the CIC cannot afford to provide any subsidised places?
• What your exit strategy would be. The assets of the organisation need to go to the community if it is wound up, so you would normally nominate another asset locked organisation to receive the assets.
• There is more scrutiny over directors pay for a CIC, but in reality this isn’t so much of an issue for most.