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8 Things Every Social Entrepreneur Should Know When Navigating the Legal Process

Our guide on navigating legal processes, featuring eight practical tips to help you get started.

By Beckie Knight-Croft, Pro Bono Support Manager

This Pro Bono Legal Week, we want to celebrate our legal partners and their commitment to supporting social purpose organisations when they need it most. Over the years, our team of experts have provided crucial pro bono legal support to numerous social enterprises, helping them navigate complex legal challenges whilst staying focused on their mission. 

Whether you’re just starting out or scaling your impact, here are eight essential legal tips every social entrepreneur (SE) should know (and some useful resources at the end!): 

  1. Know what help exists: If you’re unsure where to start, then Pro Bono Legal Week has a comprehensive guide on the free legal advice and support that may be accessible to you. You can check that out here.  
  2. Don’t be afraid to ask for legal advice: Some firms offer pro bono support to social purpose organisations. It’s useful to build a relationship with legal advisers so that you can access expert guidance when you need it most. Pro Bono Legal Week is the perfect time to explore what support you can access. For our work on the Growth Impact Fund, many firms have offered 1:1 pro bono legal advice for Social Entrepreneurs and acted on their behalf when negotiating investment deals with the Fund. They have also supported UnLtd award winners on matters as varied as creating contracts, looking over leases, and helping social entrepreneurs register a legal structure for their business. You might also be able to access legal support through communities you’re already part of or your business insurance. Do your research and make a list of the support available to you, it’s good to have on-hand if you ever need it.  
  3. Outline your accessibility requirements: Lawyers strive to provide excellent client service, and it’s helpful to them when you’re clear about what you need and what’s the most helpful to you. For example, if you think a follow up call to talk through the advice you have received by email would be helpful, then tell them. If you’re not clear about your needs, they won’t be able to meet them. If you need documents to be sent in advance, or if you would benefit from having someone on the call with you to help take notes, then let them know. Our pro-bono legal experts have worked with the Growth Impact Fund to make one of the key legal documents used in the investment process much easier to navigate after feedback from investees. Asking for accessibility can produce changes that benefits everyone.  
  4. Actively manage the legal process: When it comes to the legal process itself, be clear on what points are  “must-haves” which points are “nice-to-have” and which points don’t really impact you in reality and can be dropped. Lawyers are generally trained to “fight and win” (and minimise risk) for their clients, so you might find that your pro bono lawyers - with the best will and intention in the world - are fighting and negotiating points (and consequently delaying agreement) that may not be a priority to you. Save yourselves the time by being upfront.  
  5. Be clear on timelines: Ensuring everyone understands the timeframes you are working towards means the lawyers can plan their time appropriately and decide whether they have the capacity to help in the first place. But don’t be passive in this relationship and push for faster resolutions where possible. Legal processes can extend timelines significantly if left unmanaged. Lawyers are busy people, so it’s also helpful for them to know the reason behind your timelines e.g. because of the needs of your end-users, cashflow issues where funds need to be received by a certain deadline to enable the SE to pay its staff etc. Similarly, if things change for you and you need more time to make decisions or gather documents, let the lawyers know. Regularly checking in with each other is important to ensure everyone is available to work at the same pace. 
  6. Understand the legal implications of what you’re doing and be brave when asking questions. Legal language can be complex, so ask for clarifications during negotiations if you need to. Some things to think about might be: “How does this impact my personal and business liability?” “What risks does this change in terms expose me to?” and “What are the consequences if this clause is breached?” Lawyers expect these questions and asking them helps you make informed decisions rather than discovering issues after you’ve already signed. Understanding what you’re agreeing to is so important. Understanding what you’re agreeing to is so important and you can find a simple guide to common legal words used in the UK charity and non-profit sector here: Sistren. Remember there’s no such thing as a silly question!  
  7. Plan for your availability and future needs: Before you engage legal support, think about whether this is the best time to ask for it. Do you need the support right now, or do other things need to happen first or need your attention more urgently? Working with a volunteer takes time and energy on your part too and you will need capacity to prepare for meetings, attend them, complete follow up actions etc. Being mindful of this can help you manage your resources and business needs. Lots of law firms deliver free webinars (like the Free Talks on the LawWorks website) on key legal topics, and these can be a helpful starting point for getting to grips with an issue if you cannot commit to 1:1 support.   
  8. Communication is Key: When is it not? Pro bono lawyers give their time for free and want to see you succeed, but they can’t do this unless you’re clear about your needs. We also can’t stress enough how important it is to ask if you don’t understand something — we’re all programmed to not want to seem silly, but knowing your business’ legals is crucial. Most people are often just a phone call away. If in doubt, just ask.  

Helpful resources  

We’ve put together some helpful resources for you to get started:  

There are other potential pro-bono services available depending on the type of organisation and the type of legal advice needed: 

Big Issue Invest Fund Management (BIIFM) is the fund manager for the Growth Impact Fund, and the fund is addressed to professional investors only. Capital at Risk. BIIFM Ltd is authorised and regulated by the Financial Conduct Authority (FCA) FRN 610618.