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Can I apply?CICs

CIC funding: what you can apply for, and what you can’t

Paul KiltyLast checked 13 October 20266 min read

Lots of funders say CICs can apply. Some of them only mean one kind of CIC.

Every CIC is either limited by guarantee or limited by shares, and some funders only take the first kind. This guide shows you how to check which you are, four open grants that name CICs, and what to do if you’re limited by shares.

The short version

  • Every CIC is limited by guarantee or limited by shares, and you can’t switch once you’re set up.
  • Some funders only accept CICs limited by guarantee. Watch for the phrase “CICs without share capital”.
  • One line on your Companies House record tells you which kind you are.

Want to know how many open funds your CIC could apply for?

First, check which kind of CIC you are

Search for your organisation on Companies House and look at the line called Company type. If it says limited by guarantee without share capital, you’re limited by guarantee. If those words aren’t there, you’re limited by shares.

What it looks like on Companies House

A CIC limited by guarantee

Company type

Private company limited by guarantee without share capital
Community Interest Company (CIC)

A CIC limited by shares

Company type

Private limited Company
Community Interest Company (CIC)

Limited by guarantee

  • No shares, so no shareholders and no dividends
  • Members guarantee a set amount, usually nominal, towards debts
  • Eligible for all four grants in this guide

Limited by shares

  • Has shareholders
  • Can pay dividends, capped at 35% of profits
  • Not eligible for one grant here, and should check before applying to another

Both kinds have an asset lock, file an annual CIC report and must keep passing the community interest test.

Grants that name CICs

No type specified. These funders list CICs without saying which kind. If you’re limited by shares, it’s worth one email to confirm before you apply.

Names CICs

UK small grants

The True Colours Trust

GrantUp to £10,000UK-wideRolling

For work with disabled children, children with life-limiting conditions and their families, from birth to 25. That includes sibling support, bereavement support, family support and respite.

Check first: your income must be under £350,000, and you can’t reapply within a year of an unsuccessful application.
Names CICs

Communities Fund

Aviva Foundation

Match fundingUp to £25,000 a yearUK-wideRolling

Match funding for crowdfunding. The fund matches each donation you raise, up to £250 a donation, to a maximum of £25,000 a year across up to two projects.

Check first: your income must be £1 million or less, you need to have been operating for 12 months, and applications close for the year once the annual pot runs out. It was still open when we checked on 13 October.

Grants that specify the guarantee kind

Limited by shares? Check first. David Riddell names only CICs limited by guarantee. Clothworkers gives “CICs without share capital” as its example of an eligible CIC. If you’re limited by shares, skip the first and ask the second before you apply.

Gives the guarantee kind as its example

Open Grants Programme

The Clothworkers’ Foundation

GrantSmall grants up to £15,000UK-wideRolling

Capital costs only: buildings, refurbishment, vehicles, equipment and some digital projects. At least half the people who benefit must come from one of the foundation’s priority groups.

In their words: “organisations that are able to demonstrate their not-for-profit status and with appropriate asset locks (e.g. CICs without share capital…)”

Check first: turnover must be under £2 million for a small grant. Large grants over £15,000 are open to turnover under £10 million.
Guarantee kind only

Suicide prevention grants 2026/27

David Riddell Memorial CIO

Grant£5,000 to £25,000UK-wideCloses 31 October

For suicide awareness and prevention work. Full cost recovery is allowed, and core costs too where your mission fits. Innovative projects get priority.

In their words: “Community Interest Companies limited by guarantee”

Check first: applicants with income over £1 million, or more than 12 months of unrestricted reserves, are unlikely to succeed. It’s two stages: shortlisted applicants hear by the end of November.

Why some funders draw the line

It comes down to dividends. A CIC limited by shares can pay its shareholders up to 35% of its profits. A CIC limited by guarantee has no shareholders to pay. That’s usually why some funders only take the guarantee kind: they want to be sure none of their grant could be paid out to shareholders.

Some rule out the shares kind in so many words. Heart of England Community Foundation says simply: “We cannot support CICs limited by shares.”

If you’re limited by shares

You still have plenty of options. Three things to do:

Read the eligibility wording closely

“CICs without share capital” and “CICs limited by guarantee” both mean the guarantee kind only.

Ask when it isn’t clear

If a funder just says “CICs”, email them before you apply. A five-minute email can save you a wasted application.

Know what you can’t change

A CIC can’t switch between shares and guarantee. It can convert to a charity or a CIO, but that’s a big decision, so speak to an adviser first.

Key terms explained

Asset lock
The rule that keeps a CIC’s assets for community benefit, so they can’t pass to directors, members or shareholders.
Dividend cap
A CIC limited by shares can pay out no more than 35% of its profits as dividends.
Without share capital
The phrase Companies House and many funders use for a company limited by guarantee.
Community interest test
A CIC must show the Regulator that a reasonable person would see its work as benefiting the community, for as long as it exists.
CIC report
Filed every year with your accounts. It covers your community benefit, who you consulted, directors’ pay and any asset transfers.
Asset-locked body
An organisation, such as a charity or another CIC, that a CIC can pass assets to without breaking its asset lock.

Based on the CIC Regulator’s guidance on gov.uk.

Questions people ask

Can a CIC apply for charity grants?

Often, yes. Every grant in this guide names CICs. Some funders only take registered charities, so always check the eligibility wording.

Can we change from shares to guarantee?

No. Once a CIC is set up, it can’t convert between the two. It can convert to a charity or a CIO.

Do CICs limited by guarantee have an asset lock too?

Yes. Every CIC has one, whichever kind it is.

What if a funder just says “CICs”?

Read their full guidance first. If it still doesn’t say which kind, and you’re limited by shares, email them before you apply.

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