Formally Applying for and Creating the Delivery Vehicle

With a well-defined vision and strategic roadmap in place, Stage Three focuses on formalising the organisational structure of Power Marsden by establishing a legal entity that enables fundraising, investment, and long-term sustainability. This stage is crucial in transitioning from planning to execution, ensuring that the project operates with transparency, accountability, and financial viability.

1. Choosing the Right Legal Structure

To establish Power Marsden as a fully functional community-led initiative, we must select a legal structure that aligns with our goals. There are three main options to consider:

A. Community Interest Company (CIC)

• A CIC is a social enterprise that operates as a business but reinvests profits for community benefit.

• It provides flexibility in funding, allowing for grants, private investments, and government contracts.

• Governance includes a Board of Directors, with a legal obligation to serve community interests.

• Best for: Projects requiring investment flexibility while maintaining a commitment to social and environmental impact.

B. Community Benefit Society (CBS)

• A CBS is a legally recognised cooperative structure specifically designed for community ownership.

• Members can purchase community shares, meaning local people invest in the project and receive a financial return.

• Surplus profits are reinvested into the community, ensuring long-term financial sustainability.

• Governed by a one-member, one-vote system, meaning that no single investor has control.

• Best for: Large-scale community-owned projects with local investment opportunities.

C. Co-operative Society

• A Co-op is fully owned and controlled by its members, who benefit from the services it provides.

• Decisions are made democratically, with profits either reinvested or shared among members.

• It allows for a broad membership base, fostering strong community engagement.

• Best for: Community-driven initiatives where local participation is a core principle.

2. Creating the Delivery Vehicle

Once the structure is chosen, we proceed with:

• Registering the Entity

  • A CIC must be registered with Companies House and approved by the Regulator of Community Interest Companies.

  • A CBS or Co-op must be registered with the Financial Conduct Authority (FCA) under the Co-operative and Community Benefit Societies Act 2014.

  • Governance documents, including a constitution, community purpose statement, and asset lock agreements, must be prepared.

• Establishing Governance & Membership

  • Appointing a board of directors or management committee.

  • Defining membership criteria (who can join and how voting rights are distributed).

  • Setting up financial accountability mechanisms.

• Formalising Community Investment & Shareholding

  • If structured as a CBS or Co-op, launching a Community Share Offer allows local residents and businesses to invest in Power Marsden.

  • Shares can be structured to provide a modest financial return, making it attractive for ethical investors.

  • This model ensures the project remains community-owned and democratically managed.

3. Securing Funding & Financial Viability

Once formally registered, Power Marsden will be eligible to apply for funding, grants, and investment opportunities, including:

• Government Grants – Including the Community Energy Fund (CEF) and Local Net Zero Hubs.

• Ethical Loans & Social Investment – From institutions such as Triodos Bank, Co-op Bank, and the Big Issue Invest Fund.

• Private Investment & Sponsorship – Partnering with local businesses and impact investors.

• Crowdfunding & Community Shares – Engaging the public through investment campaigns.

4. Finalising the Delivery Plan

With the legal structure and funding mechanisms in place, the final steps include:

• Developing an operational business plan, defining project phases, cost structures, and revenue streams.
  Appointing key personnel, including project managers and advisory roles.
  Engaging stakeholders and promoting public awareness, ensuring community support and participation.
  Submitting funding applications and launching investment campaigns.