Social Enterprise Legal Toolkit
This legal toolkit is focused on supporting for-profit for-purpose enterprises, but contains a wide range of information that is useful for enterprises and projects that sit between the solely not-for-profit and the solely financially driven. The toolkit contains information, a template Constitution and real-world examples of legal issues faced by people creating, financing, advising on or wanting to know more about commercially sustainable ways of generating positive social outcomes.
The project is a collaboration between the Social Impact Hub and the Centre for Social Finance Law. It is supported by The Jacaranda Foundation, the philanthropic arm of Seventh Street Ventures.
About the Toolkit
We have developed fact sheets and template documents which cover many of the issues that arise when you set up or seek to scale a social enterprise.
There is already plenty of online information for people who want to set up a charity or not-for-profit (we use the term for-purpose enterprise), and also for people who want to set up a solely commercial enterprise (also known as a for-profit enterprise). This Toolkit is designed for those who are involved with an enterprise that wants to use its commercial operations for social good; more than just maximising profit.
We describe the various legal structures that are available; we discuss the implications for raising finance; we highlight the governance issues that can arise when dealing with an organisation that sits between the for-purpose and for-profit worlds. We have spoken with several successful entrepreneurs whose organisations are using their businesses to do far more than maximise profits, and we describe their journeys in our case studies.
Template Documents
There are three template documents available for download.
Constitution
This document is a template constitution for a for-profit-for-purpose company.
In customising your constitution, in some places there will be a few different options for you to choose from. We have explained the options available.
Discussion notes
We explain how the legal issues we have described apply to a specific legal structure, namely the for-profit-for-purpose company
Structure diagram and features of the Constitution
This document provides an annotated illustration of the structure of a company set up for purpose and profit, noting key issues to consider.
Case Studies
We have spoken with several successful social entrepreneurs, who have generously shared their stories. In our case studies you will see the practical application of the legal issues we have described.
Chuffed
Two Good Co.
Pollinate Group
Information Sheets
Information Sheet 1: Choosing the right legal structure
We set out the various options for legal structure, covering the spectrum of for-profit and for-purpose entities. This includes the pros and cons of each structure.
Information Sheet 2: Hybrid structures
A hybrid structure means that there is more than one legal entity in your organisation – potentially a for-purpose entity, as well as a for-profit company. This information sheet explains hybrid structures in detail.
Information Sheet 3: Governance considerations
This information sheet highlights a few governance issues applicable to organisations that seek to embed purpose, as well as make profit.
Information Sheet 4: Raising finance
This information sheet provides information on the wide range of financing options available.
Information Sheet 5: Independent certification options as a social enterprise
This information sheet provides information on various certifications to establish social impact credentials.
We want this Toolkit to develop and grow. If you have any updates or ideas for additions and improvements, or if you want to share your story or documents, please let us know. Information you provide to us will only be made public with your express consent.
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The information contained in these materials is general in nature, does not constitute legal or financial advice and cannot be construed as such. Independent legal advice specific to your circumstances should be sought since the Toolkit is general in nature.