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Charity Status Versus Community Amateur Sports Club Status

Reasons to choose Wilson Browne

Volunteers are at the heart of our local communities and enriching our lives through running sports clubs and other community-based activities.

How the volunteers organise themselves can have a big impact on a club’s finances and also its freedom to operate in a flexible manner.

Having charitable status for a community organisation obviously brings significant benefits tax advantages but the flip side is that charitable status brings with it increased obligations both in terms of the purpose of the organisation and increased reporting obligations.

Over the past twenty years or so there has been a shakeup and now settle down, in the different treatments for these organisations.

Charities – all the tax benefits that are commonly assumed, including zero-rated VAT for goods and services supplied in the course of the construction of a new building intended to be used for solely charitable purposes. The obligations that come with a charity are a fairly strict interpretation of what constitutes charitable use and regular reporting requirements and associated oversight by the Charities Commission.

Community Amateur Sports Club (CASC) – it was possible for a short time over 10 years ago for a club to be both a CASC and a charity but no longer. A CASC does have some tax advantages similar to that of a charity but they are not as extensive. For example, a recent case has confirmed that a CASC cannot claim zero-rated VAT for buildings in the way that a charity can. The rationale for that is because property belonging to a CASC can be used for a much wider purpose (commonly for the benefit of the community as a whole) than is allowed to a charity.

We can help advise on the constitution for a charity or a CASC but the decision as to which to opt for will be driven by the purpose of the club and the differing tax benefits.

For more information about this please contact our Charity specialists on 0800 088 6004.

Nina Wilson

Posted:

Nina Wilson

Partner

Nina is a Solicitor and Partner of almost 20 years experience advising clients on commercial property law. A Legal 500 recognised Lawyer, Nina has acted in multi-million pound acquisitions and development agreements.