In April 2010, the BC Centre for Social Enterprise released a paper by charities lawyer Richard Bridge, called More Reflections on Legal Structures for Community Enterprise. The creation of the paper was supported by the Illahie Foundation and MCC BC.

Download More Reflections on Legal Structures for Community Enterprise >>

Highlights include:

• Consideration of co-operatives as solutions to community enterprise;
• Commentary on the recent opinion letter from CRA with respect to non-profits' practices of cross-subsidizing their activities with business profits
• An overview of the ‘B’ Corporation.

The paper concludes that the time is right for a Canadian version of the UK’s Community Interest Company. It will help modernize Canada’s legal and regulatory framework regarding social or community enterprise, and it will fill a gap between business corporations, co-operatives, non-profit organizations, and charities. This new legal structure could be modeled closely on the UK approach, or it could draw on the Benefit Corporation model legislation recently adopted in Maryland, or could combine attributes of both.

Such a new structure will not displace the existing options, but will provide more choice to entrepreneurs and organizations with a desire to devote their creativity to community benefit.

Related papers, including one published just last week are listed below, and available by visiting the website of the BC Centre for Social Enterprise.

• 5 Easy Ways to Jeopardize Your Charity (Jul 2010)
• The fine print - Canadian charities operating social enterprises (Jan 2010)
• Legislative Innovations and Social Enterprise Structural Lessons for Canada (Feb 2009)

Your feedback on these papers, and Richard Bridge's recommendation to create a Canadian version of the UK's Community Interest Company are welcomed.

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