Funding is a challenge for lots of voluntary organisations and part of the problem can be an organisation’s legal structure. For example, many limited companies are provided key services for the community in the mental health sector but due to the legal status as a private limited company, they are unable to apply for funding that is available to voluntary sector organisations, many of whom provide similar services. 

This scenario describes the situation faced by IndradhanushKids, a limited company who approached W3RT CVS looking for support to develop its services. The group provided opportunities for children from South Asian families to get involved in music, dance, and other activities. The group also supports families and other community members, bringing them together to socialise and connect with each other.  

When we met the organisation earlier this year, we identified that being a private limited company would limit its ability to fundraise; both from grants and trusts as well as through private donations. As a result, we discussed the options that the organisation had, namely: 

- Establish a new organisation such as a Community Interest Company (CIC) or a Charitable Incorporated Organisation or; 

- Convert the existing limited company to become a CIC 

Through these conversations, it was agreed that the directors of IndradhanushKids would set up a new CIC rather than converting their existing limited company as we supported them through this process, including drafting the relevant documents that would be submitted to Companies House as part of the application and then helping them with the other aspects of what they would need to do including establishing policies, insurances, and bank accounts.  

It was confirmed in June 2023 that Companies House had approved IndradhanushKids’ application to become a CIC and the organisation is now known as IndradhanushKids Academy CIC. Nilanjana Paul, the director of the new CIC who liaised with us during the process thanked W3RT CVS for their support through the process and said that ‘this wouldn’t have been possible without your help’.  

We are delighted to have helped establish IndradhanushKids Academy CIC and look forward to supporting them as they develop as a voluntary organisation. You can find out more about them by visiting www.indradhanushkidsacademy.com. 

W3RT CVS provides a range of free support to voluntary and community organisations in the Watford and Three Rivers area thanks to funding from Watford Borough Council and Three Rivers District Council. You can find out more about our services by clicking here and if you or your organisation would like support, get in touch by calling 07908 209908 or emailing [email protected]