Community Contribution Companies
What are Community Contribution Companies?
In July 2013, a new type of corporation was introduced by the BC Government. Community Contribution Companies, or CCCs, are hybrid corporations that bridge the gap between for-profit companies and non-profit organizations. Similar to non-profits, CCC’s are setup to achieve a social purpose and must adhere to BC government law related to this. However, unlike non-profits, CCC’s can attract equity investment for growth and operate the same way as any other business. non-profits and charities have restrictions as to owning and operating businesses and running social enterprises. The CCC model allows social enterprise businesses a legal structure to operate under.
CCC’s must follow a number of BC government rules to ensure the majority of their profits and assets will always be directed toward a social purpose:
- Dividends paid to shareholders are limited to 40 per cent of the CCC’s annual profits.
- A CCC must have three directors (instead of one) who must act with a view to the “community purposes”
- CCCs must publish an annual “community contribution report” to the BC government describing the company’s social spending, community activities and dividend payments
- If a CCC is dissolved, a maximum of 40 per cent of its assets may be distributed to shareholders (the remainder must be transferred to a charity or other asset-locked community entity)
- There are guidelines for salaries paid to staff to ensure the annual profit is not diluted in regards to community contributions
CCCs also are not eligible for donations or federal income tax exemptions and do not have the ability to issue tax receipts. The way CCC’s raise money is through equity investment like any other business. Although CCC’s have a very strong social purpose, CCC’s do not rely on donations or grants. The must sustain themselves on revenue just like any other business.
Our goal is to leverage technology to maximize community impact versus maximizing profits. Commitment to the communities we serve is not a marketing play; it is in our DNA including the people we hire. The CCC model made sense to us considering the many volunteers, non-profits and charities that we work with and our social mission.
Where can I learn more?
More information about the model, and about incorporation in general, can found through the organizations below: