CIC Grant Eligibility: What Do Funders Actually Look For?

First: a CIC is not a charity

A Community Interest Company is a limited company with a community purpose and an asset lock. It is not a registered charity, so grants restricted to registered charities are closed to it. That doesn't close the door on grant funding: Charity Commission guidance confirms charities can make grants to non-charitable organisations, including CICs, where this furthers their own charitable purposes and they take steps to ensure the money is used properly. The CIC Regulator also publishes guidance specifically for funders considering CICs.

What funders commonly check

1. Legal structure

Is a CIC named as an eligible applicant? Some funders list CICs explicitly, some say "constituted groups" or "not-for-profit companies", and some exclude all companies.

2. Limited by guarantee or by shares

Some funders accept only CICs limited by guarantee, because a CIC limited by shares can pay capped dividends. See our guide Can CICs limited by shares apply for grants?

3. Community benefit

You'll need to show who benefits and how. Funders want the benefit to reach the public or a defined community, not mainly the directors or a small private group.

4. Asset lock and profit distribution

Every CIC has an asset lock, which reassures many funders. Some also ask whether you pay dividends or directors' remuneration, and how any surplus is reinvested.

5. Location

Many funds are limited to one UK nation, a region, a council area or even a postcode. "UK-wide" funders sometimes run separate programmes for England, Scotland, Wales and Northern Ireland with different rules.

6. Organisation age

Some programmes want at least a year of activity or a set of filed accounts. Others, like social entrepreneur awards, exclude organisations that are too old. Our UnLtd example shows a four-year limit in practice.

7. Annual income and financial history

Funders may set income bands (for example, "under £250,000"), ask for recent accounts or bank statements, or cap the grant as a share of your turnover.

8. Number and independence of directors

A common requirement is at least three unrelated directors who don't live at the same address. A CIC with one or two directors, or a board made up of family members, may be ineligible.

9. Eligible activities

The project must match the fund's priorities — not just sound similar. Many funds exclude political or religious promotion, or activities that are a statutory responsibility.

10. Trading

Some funders want to see earned income as evidence of sustainability; others won't fund commercial trading activity itself. Know how much of your income comes from trading rather than grants.

11. Permitted costs

Check whether the fund pays for salaries, core running costs, equipment, capital works or costs already incurred. Retrospective spending is almost always excluded.

12. Governing documents and policies

Expect to provide your articles of association, and sometimes policies on safeguarding, equality, data protection or health and safety — especially if you work with children or adults at risk.

Practical examples of restrictions

• National Lottery Awards for All England accepts CICs limited by shares only if they follow the CIC Regulator's guidance on sharing profits.
• Cambridge City Council's Sustainable City Grants exclude CICs limited by shares and ask CIC applicants for their CIC34 community interest report.
• UnLtd's Awards exclude ventures incorporated or running for more than four years, and Scaling Up requires £18,000+ traded income in the last 12 months.

Examples checked against official pages in October 2026; criteria can change between rounds.

Seven things to check before spending time on an application

1. Organisation type: are CICs — and your type of CIC — named as eligible?
2. Location: does your delivery area fall inside the fund's coverage?
3. Age and accounts: are you old enough, or young enough, and do you have the documents asked for?
4. Income: are you within any income band, and is the grant size proportionate?
5. Board: do you have enough independent directors?
6. Project and costs: does the work match the priorities, and can the fund pay for what you need?
7. Status and deadline: is the fund open now, and is there time to apply properly?

If any answer is "no" or "not sure", stop and resolve it — or contact the funder — before writing anything. For where to look in the first place, see where can CICs get funding in the UK?

Frequently asked questions