Page 99 - Social Enterprise A New Business Paradigm for Thailand

which enjoy income tax relief and exemptions on capital gains tax. The CIC’s restrictions, such as
the asset lock and maximum dividend cap, can also act as a deterrent for potential investors.

In addition, private companies with corporate social responsibility (CSR) policies often prefer to

provide support or donations directly to charitable organizations, which are more widely
recognized and offer clearer tax incentives. Public awareness of CICs also remains relatively low
when compared to registered charities, although understanding and recognition have been
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gradually improving.
As of March 31, 2023, there were a total of 28,878 CICs registered and overseen by the CIC
Regulator. Between April 2022 and March 2023, 6,056 new CICs were approved and registered.
Of these, 2,892 were companies limited by shares that had applied to convert into CICs,
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representing a 3% increase compared to the 2021–22 period. During the same fiscal year (2022–
23), 3,169 CICs ceased operations, accounting for 11% of all CICs on the register. This decline is
partly attributed to the impact of the COVID-19 pandemic. Nevertheless, if we focus solely on the
CICs that were founded and registered since the law came into effect in 2005, 24% (or 2,834 CICs)
remain active and have demonstrated resilience, continuing to operate successfully despite
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economic challenges.

3.2.2 Use of Social Impact Bonds (SIBs):
Case Study: Reducing Recidivism at HMP Peterborough

Between 2010 and 2015, the UK Ministry of Justice implemented a project called The One Service,
which utilized an innovative financial instrument known as the Peterborough Social Impact Bond
(SIB). The project aimed to reduce the rate of recidivism among male prisoners released from
HMP Peterborough. The target group consisted of men aged 18 and older, who were serving
sentences of less than 12 months and had been released from prison.

To fund the initiative, the government raised £5 million through the issuance of Social Impact
Bonds (SIBs) from 17 investors, most of whom were trusts, charities, and philanthropic
foundations. The One Service, the overarching coordinating body, operated through a consortium

of private organizations, including St. Giles Trust, Ormiston Children and Families Trust, YMCA,
SOVA, MIND, TTG Training, and John Laing Training. St. Giles Trust and Ormiston Children and
Families Trust were responsible for addressing prisoner needs both before and after release,

40 Kate Morgan, Community interest companies explained, updated June 28, 2024, Source:
https://www.unbiased.co.uk/ discover/tax-business/starting-a-business/community-interest-companies-explained
41 The Office of the Regulator of Community Interest Companies (CICs), Regulator of Community Interest
Companies Annual Report 2022 to 2023, pp. 5-6, 26.
42 Ibid, Page 5, 19.
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