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How to navigate our CIC's future amid funding challenges (Anonymous post 🤫)

Governance

Ocean King Staff Senior Community Executive at CharityConnect Posted 1 year ago

This question is from a member of our community that wishes to remain anonymous:

I would be grateful if anyone could give me some advice.

We are a CIC with a mix of donations and government grant funding. We have seen our donation pipeline dry up and need to consider if it is feasible to continue as such; we are entering a consultation period and have employed a consultant to help us.

As a recipient of public funds (this runs up to March) does anyone know if we need to show the process of selecting the consultant? I ask as one of the options may be to wind down in the end. Thank you

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Fiona Sanderson Staff PANEL

Director at Miss S - Accounting for Purpose CIC 1 year ago

Bob has provided a thorough reply, but in simple terms, I would recommend that you absolutely should have a written procedure backing up how and why you selected said consultant.

Ideally your accountant should have been able to prodide the information and support you require without needing to engage, at extra cost, another professional, but do still ask your accountant for information, support and advice on this matter.

If you do decide that winding down is your only option, remember your asset lock obligations and make sure that your consultant is familiar with CICs as they do have different requirements to regular limited companies. Hopefully it won't come to this though and your consultant will help you to identify alternative income streams.

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Bob Snarey Staff PANEL

Director at writing.fund 1 year ago

When employing a consultant, especially as a Community Interest Company (CIC) that receives public funds, transparency and accountability in the selection process are important. While there may not be a legal requirement to publicly show the process of selecting the consultant, adhering to best practices in procurement and decision-making is advisable. Here are some key points to consider:

Procurement Policies: Review any procurement policies your CIC has in place. These policies often outline the process for selecting external consultants or service providers, including requirements for transparency and fairness.
Funder Requirements: Check the terms and conditions of your government grant funding. Some funders have specific requirements about how funds can be used and may require transparency in how consultants are selected.
Documenting the Selection Process: Even if not required, it's good practice to document the process of selecting the consultant. This includes criteria used for selection, why the particular consultant was chosen, and how they meet your CIC's needs. This documentation can be useful for accountability purposes and for future reference.
Competitive Bidding: If feasible, consider a competitive bidding process where multiple consultants are invited to submit proposals. This can help ensure that you are getting the best value and expertise for your needs.
Board Approval: Depending on your CIC's governance structure, the decision to hire a consultant, especially for a critical decision like winding down, should ideally be approved by your board or governing body.
Stakeholder Communication: Be transparent with your stakeholders, including staff, beneficiaries, and funders, about the decision to hire a consultant and the reasons behind it. Clear communication can help maintain trust, especially during uncertain times.
Ethical Considerations: Ensure that the selection process is free from conflicts of interest and adheres to ethical standards.
Outcome Reporting: Be prepared to report on the outcomes of the consultation, especially if public funds are involved. This can include how the consultant's input was used in decision-making.

Remember, the key is to ensure that the process is fair, transparent, and aligns with both your internal policies and any external funding requirements. This approach not only helps in maintaining the integrity of your CIC but also builds trust among your stakeholders.

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Fiona Sanderson Staff PANEL

Director at Miss S - Accounting for Purpose CIC 1 year ago

Bob Snarey great reply here Bob, very clear and yet thorough

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