Voluntary, Community and Social Enterprise (VCSE) definition

VCSE means an incorporated voluntary, community or social enterprise organisation which serves communities solely within England and which is either:

(a) a charity, Community Interest Company or Community Benefit Society, registered with the relevant registry body; or

(b) an unregulated organisation which:

1. has a clear social mission which, in the reasonable opinion of the Fund Administrator, is analogous to a recognised charitable purpose;
2. distributes less than 50% of post-tax profits and reinvests at least 51% surpluses into pursuing its social mission;
3. has a constitutional or contractual lock on its social mission, its dividend and surplus distribution policy and “asset-lock”;
4. carries out, or has ambitions to carry out, trading activities in support of and which are causally linked to its social mission;
5. offers its products and services for general public benefit without restrictions and barriers, such as affordability;
6. is open to undertaking an independent social impact audit;
7. has remuneration and benefits policy which it is willing to make publically accessible, and which is reasonable and proportionate relative to the market practice for VCSEs;
8. in the case of a sale of the organisation, the directors make best efforts to preserve the social mission under new ownership;
9. can demonstrate that no private benefit will arise from the Grant; and
10. no state aid issues have been identified;