Community Amateur Sports Clubs
We consider the rules of Community Amateur Sports Clubs and their implications. Fundraising To GiftAid Support specialists can aid and advise you on the CASC rules and the benefits of carrying out these processes correctly can be highly rewarding.
Since April 2002, many local amateur sports clubs have been able to register with HMRC as Community Amateur Sports Clubs (CASCs) and benefit from a range of tax reliefs including Gift Aid. In 2014, the tax benefits were increased to encourage more clubs to register and some of the registration requirements will be amended in order to clarify the conditions that clubs will have to satisfy.
Can my club register?
Yes however your club must fall under the following categories:
- Open to the whole community;
- Organised on an amateur basis;
- Its main purpose providing facilities for, and promoting participation in one or more eligible sports.
Open to the community
A club is open to the whole community if:
- membership to the club is open without discrimination
- facilities are open to members without discrimination, and
- any fees are set at a level that does not pose a significant obstacle to membership or use of the club’s facilities.
Discrimination
These includes:
- discrimination of ethnicity, nationality, sexual orientation, religion or beliefs
- discrimination of sex, age or disability, except as a necessary consequence of the requirements of a particular sport.
Costs related to membership and participation
It is expected that new regulations will specify:
- clubs where membership and participation costs total £520 or less a year will be considered to be open to the whole community
- clubs where membership costs (excluding participation costs) are above £1,612 a year will not be eligible
- clubs where membership and participation costs total more than £520 a year must make special provisions for members on a low or modest income to participate for £520 or less.
Organised on an amateur basis
A club is organised on an amateur basis if:
- It is non-profit making
- It provides for members and their guests only the ‘ordinary benefits’ of an amateur sports club
- It does not exceed the limit on paid players
- Its governing document requires any net assets on the dissolution of the club to be applied for approved sporting or charitable purposes.
Non-profit
A club is non-profit making if its governing document requires any surplus income or gains to be reinvested in the club. Surpluses or assets cannot be distributed to members or third parties. Howevr, this does not prevent donations to other clubs that are registered as Community Amateur Sports Clubs.
Ordinary benefits’ of an amateur sports club
Some of the rules as to what constitutes an ‘ordinary benefit’ will be amended in 2014.The ordinary benefits of an amateur sports club include:
- stipulation of sporting facilities
- sensible provision and maintenance of club-owned sports equipment
- stipulation of suitably qualified coaches
- stipulation, or reimbursement of the costs, of coaching courses
- repayment of certain travel expenses incurred by players and officials travelling to away matches
- sale or supply of food or drink as a social adjunct to the sporting purposes of the club.
Payments to members
A club is allowed to:
- come in into agreements with members for the supply to the club of goods or services or
- employ and pay remuneration to staffs who are club members.
CASC could pay members for services such as coaching or grounds maintenance but would not, for example, normally pay members to play. However under new regulations clubs will be allowed to pay a maximum of £10,000 a year in total to players to play for the club.