How we established our Community Benefit Society
At Câr-y-Môr we’re committed to making a positive impact on the Welsh coastline and our local community.
Our aim is to improve the coastal environment and the wellbeing of those in our region, through regenerative ocean farming and sustainable job creation.
We’re Wales’ first regenerative seaweed and shellfish farm, which has seen interest in Câr-y-Môr across the board; from the Prince of Wales to Patagonia, Countryfile to Conservation Without Borders.
But did you know that our pioneering work stems from a Community Benefit Society? What exactly that is, what it means, and how it benefits the way we operate are questions we’re often asked.
So read on for the most Frequently Asked Questions about Community Benefit Societies, and what being one means to us:
What is a Community Benefit Society?
Well, it is, by its very definition, a really lovely thing!
A Community Benefit Society (CBS) is a legal organisation, registered with the Financial Conduct Authority (FCA), which is not-for-profit and the purpose of which is to benefit its community as a whole.
“It’s similar to a workers’ co-operative,” says Owen Haines, Managing Director at Câr-y-Môr. “Except that instead of for the benefit of just workers, it is for the benefit of all members. And any benefit the members of Câr-y-Môr get is because they are part of the Câr-y-Môr community, not because they are members of the society.”
All CBSs must operate, by law, for the benefit of the community. That means that all surplus has to be reinvested back into the society, rather than being distributed among shareholders.
“A Community Benefit Society (CBS) is the ultimate legal community business structure,” added Owen. “Thus giving it the potential to bring more benefit to society than a CIC, co-op, charity or B-Corp. Or a standard “for profit” business.”
This unique set-up means a CBS operates so that: all members own one equal share; membership is open to all who support its aims (meaning it can keep growing); shares in a CBS cannot be traded; dividends, buy-outs and takeovers cannot happen; and it can run community share offers.
Officially this means that: “The purpose of a community benefit society is to benefit ‘the community’. The community can be said to be the community at large. Societies can specify a defined community, such as a locality.” [1]
The result is that: the better the CBS does, the better the community does.
A CBS is not the same as a CIC, co-op or charity; which we’ll explore further down.
How is a Community Benefit Society different to a charity?
In England and Wales a registered charity is an organisation where the whole purpose is established for public benefit. Conversely, the purpose of a CBS is to operate for the benefit of its community.
CBSs can choose how they generate their income, whereas charities are restricted in how they get their funds. Confusingly there is such a thing as a charitable community benefit society where the purpose is solely charitable!
The reason Community Benefit Societies and charities get muddled is because they’re both derived from a desire to make good things happen and look beyond profit.
You’ll be aware of plenty of charities who do great things, like the Marine Conservation Society and Surfers Against Sewage. Whilst examples of Community Benefit Societies you might have heard of include where your village came together to save its local pub, or your town formed its own farmers’ market.
Are CICs and Community Benefit Societies the same thing?
Again, there is often confusion around the differences between Community Interest Companies (CICs) and Community Benefit Societies (CBSs).
“A CIC is a special type of limited company which exists to benefit the community rather than private shareholders.” [2]
A CIC needs an ‘asset lock’- a legal promise stating assets will only be used for its social objectives. A CBS can also have an asset lock, but doesn’t have to.
And a CIC isn’t accountable to its community or shareholders in exactly the same way as a CBS.
Our local friends on the St Davids peninsular at Caeriad operate as a CIC – take a look at their website to see all the good things they get up to... which includes using our seaweed as a bio-stimulant to improve the quality of their soil.
Is a co-operative and Community Benefit Society the same thing?
Again, no! A CBS sees its profit put back into the business, with the purpose of benefitting its community. While a co-operative exists for its members, with those members deciding what happens with profits.
According to uk.coop the UK has 7,586 independent co-ops which employ 249,142 people and contribute £40.9 billion to the economy. If you’re looking to find out more about co-operatives here in Wales, we recommend heading over to Cwmpas.
What are the benefits of a Community Benefit Society?
There are numerous benefits to creating a Community Benefit Society over forming another type of organisation.
You’ll often see a Community Benefit Society where there is a local desire to create or sustain a service which benefits that locality; like a shop, pub, or sports club.
They always have their roots in community; which could be job creation, sustainability, wellbeing... or a combination of all those things and more.
When formed, like Câr-y-Môr, for something larger scale like marine farming, this has the added benefit of widening that community to attract more people, and having a greater reach and influence.
How does it benefit Câr-y-Môr to be a Community Benefit Society?
Since we launched we’ve seen for ourselves how being a CBS has supported the growth of Câr-y-Môr.
Some of the benefits we’ve noted include:
1. Inspiring a growing network of experts, mavericks and entrepreneurs who are committed to using their experience to develop a Community Benefit Society;
2. Building a track record of viable trading;
3. Acquiring funding and delivering the proposed projects;
4. Being able to raise continued unsecured funds and grants for the business to continue growing and innovating;
5. Being able to demonstrate to Government organisations and social enterprise funders that CBS’s have exponential growth potential.
“Being a Community Benefit Society sets us apart from other organisations,” says Owen. “We aren’t some Limited Company (although we do have Ltd status) out to make a few investors rich.
“We were formed to benefit the community through our goals of: improving the coastal environment through regenerative ocean farming; and improving the wellbeing of the local community through job creation, supply of fresh local seafood, and environmental restoration.”
Looking to the future at Câr-y-Môr...
As a CBS, we measure success differently to other businesses, and our aims and hopes for Câr-y-Môr are ambitious.
Being driven by a community justifies this ambition, as we collectively unite to ensure Câr-y-Môr reaches its potential.
In the coming years we aim to see Câr-y-Môr: employing 25 people; turning over £2 million by selling bio-stimulants to farmers, and Welsh seafood; creating a seaweed and shellfish hatchery; offering employee housing; and helping other communities and businesses replicate any aspect of our CBS business model.
“We set up Câr-y-Môr to benefit the coastal community of St Davids – and all those who love and care for the Welsh Coast,” Owen says. “Looking ahead we are determined in our efforts to create jobs, improve marine ecosystems and support our community’s wellbeing.
“As a Community Benefit Organisation we do this safe in the knowledge that profits cannot be taken by shareholders, and the community business cannot be sold off.”
What being a Community Benefit Society means to Câr-y-Môr...
For the Love of the Sea Limited (Câr-y-Môr) was officially founded and registered as a Community Benefit Society with the Financial Conduct Authority (FCA) on the 1st of August 2019 by founder members: Owen Haines, Chimene Haines, Francois Beyers, Joanne Haines, Alice Rogers, Jon Haines and Meg Haines.
Câr-y-Môr does, and will continue to:
• Conduct our business for the benefit of the wider community
• Reinvest profits to achieve our aims
• Be equally owned by all our members, with membership open to all that support us.
Our society’s biggest asset is our members and supporters – with an incredible mix of skills, expertise, generosity and commitment to the aims of Câr-y-Môr.
Please follow us on social media (links at the bottom of this page) to stay up-to-date with all things Câr-y-Môr. And browse our Shop to discover our magnificent seaweed and seafood produce.