What is a Community Benefit Society?
A comprehensive guide to the Community Benefit Society (CBS) business model, and the strong synergy with community shares
A Community Benefit Society (CBS) is a type of not-for-profit cooperative organisation in the UK designed to serve the broader interests of a community rather than just its members. CBSs operate under the Co-operative and Community Benefit Societies Act 2014 and are legally recognised as entities focused on social objectives over profit.
Below you will see some of the key characteristics that makes a CBS unique from other not-for-profit organisations.
COMMUNITY BENEFIT SOCIETY
Key Characteristics
Community Focus
Unlike a traditional cooperative where benefits are directed primarily to members, a CBS aims to provide a service or advantage to a particular community (often local) or a specific cause. For Qualitas, this includes affordable housing
Democratic Structure
CBSs typically operate on a one-member, one-vote principle, meaning that all members have an equal say in decision-making, regardless of their shareholding. This ensures community control and a democratic governance structure.
Regulation
CBSs are regulated by the Financial Conduct Authority (FCA), which ensures they adhere to the principles of benefiting the community and providing transparent governance.
FCA Registration No. RS008447