What are legal structures?
All organisations have a legal form – the sort of body it is in the eyes of the law.
When setting of an intentional community, social enterprise or not-for profit organisation, it is important to have the right legal structure. This helps to define how the organisation is going to operate effectively, and to manage the finances, risks and liabilities.
Questions to ask
Before setting up a legal structure, it is important to think about the aims of your project, enterprise or community, and how it might operate in practice.
For a developing intentional community, here are some example questions…
- What are our aims and priorities?
- How do we want to live? How do we want to relate to each other?
- Who will benefit? (who will live there?)
- Will it be resident or community owned?
- Where is funding coming from?
- How should the property be owned?
- Who has the power or control?
- How is decision making and dispute resolution dealt with?
Also; it’s worth considering future scenarios, e.g. financial challenges, or people with different agendas gaining power or control. It’s not always possible to ‘futureproof’ projects, but considering possible safeguards may be helpful.
Legal structures in Britain
The following is a very brief summary, see the PDF for more detail.
For many intentional communities in Britain, one of the following structures is used:
- Cooperative Society (i.e. housing co-operative)
- Company Limited by Guarantee or Shares
- Community Interest Company
For organisations working for community benefit, or for a not-for-profit enterprise, two of the most commonly used structures are:
- Community Benefit Society
- Community Interest Company
Finally, one of two ‘wrappers’ could be applied to several of the above structures, namely:
- Community Land Trust
- Charity
Also, there are other bespoke vehicles for a charity to operate within.
For more information about the various options, we’ve compiled an information sheet from various sources – it’s only an overview, with some helpful links, but it’s a start…
Please note: the PDF below is 3 years old or so, and some of the links may no longer work. The document will be updated in due course.
Key terms
Housing co-operative – A co-operative is a not-for-profit and democratic organisation run for and by its members, and in relation to housing, this means residents self-managing their own housing. They can be both tenants and landlords, or can collectively pay into a mortgage.
Community Interest Company – A company limited by guarantee or shares that is acting for the benefit of a defined community. A CIC is intended as a specialist vehicle for social enterprise, and is precluded from registering as a charity.
Community-led housing – A growing movement of normal people managing housing projects that build the decent and affordable homes – with open and meaningful community participation – and often involving a Community Land Trust.
Videos
External links
Cohousing UK including case studies
Confederation of Cooperative Housing including community-led housing case studies
Ecological Land Cooperative – Community Farm Purchase – Governance & Structure
Financial Conduct Authority including its mutuals public register
Related pages
Developing projects & communities (SW England)
Developing projects & communities (Cymru)
Ideas for projects & communities (Cymru)
This page is for informational purposes only and should not be taken as advice or recommendation. It may not be comprehensive or up-to-date, and may omit important regulations, policies or criteria. You should do your own research and seek professional advice as appropriate before deciding your way forward. See website disclaimer / terms of use.
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