- Community broadband schemes typically use a co-operative, community benefit society or community interest company structure.
- These structures include an asset lock, keeping the network and surpluses dedicated to community benefit.
- Funding can come from community share offers, loans, grants and gigabit vouchers.
- Governance is member or director led, with accountability to the community the network serves.
The legal structure of a community broadband scheme is not a technicality, it shapes how money is raised, who controls the network, and whether the benefits stay in the community. The three common structures each suit slightly different circumstances, and choosing well sets a scheme up for long-term success.
The co-operative and community benefit society
A co-operative is owned and democratically controlled by its members, on a one-member-one-vote basis rather than by shareholding. A community benefit society is a related structure run specifically for the benefit of the wider community rather than just members. Both can raise money through community share offers, where local people invest, and both typically include an asset lock that prevents the network being sold off for private gain.
The community interest company
A community interest company, or CIC, is a limited company with a statutory asset lock and a requirement to serve a community purpose. It offers the familiarity of company structures with built-in protection that surpluses and assets serve the community. CICs can be a good fit where a scheme wants the governance clarity of a company while guaranteeing community benefit.
How they raise money
Community share offers are a powerful tool: residents invest directly, giving the scheme capital and the community a stake. Beyond that, schemes draw on loans, grants and gigabit vouchers. The asset lock reassures funders and investors that their money is building a lasting community asset, not enriching private owners.
Comparing the structures
| Structure | Control | Asset lock | Typical fundraising |
|---|---|---|---|
| Co-operative | Members, one vote each | Usually yes | Community shares, loans |
| Community benefit society | Run for wider community | Yes | Community shares, grants |
| Community interest company | Directors, company rules | Statutory | Grants, loans, vouchers |
Governance and sustainability
Whichever structure is chosen, sustainability depends on sound governance: a committed board or committee, transparent accounts, enough recurring revenue from subscriptions to maintain the network, and a plan for reinvestment and faults. The structures provide the accountability framework; the people running the scheme provide the diligence that keeps it going for the long term.
Frequently asked questions
What legal structure suits a community broadband scheme?
Commonly a co-operative, community benefit society or community interest company. Each includes an asset lock that keeps the network and surpluses dedicated to community benefit. The best choice depends on how the scheme wants control and fundraising to work.
How does a broadband co-operative raise money?
Often through a community share offer, where local residents invest directly in the scheme, supplemented by loans, grants and gigabit vouchers. The asset lock reassures investors their money is building a lasting community asset.
Can a community broadband scheme apply for Gigabit Vouchers?
Yes. Gigabit vouchers can contribute to funding a community scheme's build, and group applications across multiple premises can make a project more viable. Check current eligibility and approved suppliers before applying.
What is a community benefit society?
It is a structure run specifically for the benefit of the wider community rather than just its members, typically with an asset lock and the ability to raise money through community shares. It is well suited to community broadband.
How is a community broadband network governed?
Through the chosen structure's rules, member democratic control in a co-operative, or director-led governance in a CIC, with accountability to the community. Sustainability also depends on transparent accounts and enough subscription revenue to maintain the network.
