The Differences Between a Social Enterprise and a Charity

as a business, but it works towards making an impact on someone’s life. Some Social Enterprises are non-profit and they aim to solve a social problem, and they reinvest the surplus into the business to impact another social issue.

The main differences

A charity does not aim to make a profit, and they often fund their own activities through donations as they have no fixed income. A Social Enterprise, on the other hand, can sell products or services with the profits reinvested in their business to continue making a social impact.

You will find, however, that some Social Enterprises are receiving grants or funding when they start-up.

Does it matter?

For me, I have always said that it doesn’t matter whether you are going through the charity route or the Social Enterprise route, as long as you are passionate about what you want to achieve and you are striving to create a social impact.

The differences between the two can sometimes become blurred, especially when they both aim to do a similar thing: help. Whether that be the environment, people or more.

Summary

• A charity is very clear about its aims and objectives

• A Social Enterprise does not have to be registered as a charity, you can be a limited company (In the UK)

• A charity has a board of trustees

• A Social Enterprise has a board of directors

• A Social Enterprise can be non-profit or for profit

If you are thinking of setting up a Social Enterprise, feel free to contact me here or on my Facebook group.

My door is always open.

Wishing you growth and happiness,
Nyasha