Social enterprise, CLG and charity: the difference

Three terms that people often mix up.

• CLG (company limited by guarantee) is a legal form of company. Non-profit organisations often choose it. By itself it does not make an organisation a charity and does not give a right to grants.
• Social enterprise is a way of working: a business solves a community problem and directs part of its income to the common good.
• Registered charity is a separate status granted by a regulator. Tax relief is possible only after registration and a separate application.

What not to do

• Do not assume that registering a CLG opens grants automatically.
• Do not put a grant into your budget until you have checked who is allowed to apply.

Your own case needs advice from a solicitor and an accountant.

Fortuna Community is itself a company limited by guarantee. You can read how we are set up on How we are run.