The value that our local sports clubs bring to our
communities is enormous, from promoting healthy
and active lifestyles to improving community
cohesion and quality of life. Amateur sport is also a major
part of the voluntary sector, accounting for 26 per cent of
all community volunteers.
Feeling the pinch
Despite this, our local clubs are suffering. The recession, as
well as the ever-increasing financial and administrative
burdens such as music and alcohol licensing, rising Business
Rates and utility costs, are placing undue strain on clubs.
Perhaps the most worrying thing about these threats to
sports clubs is that the only vehicle through which an
Olympic legacy of increased participation can be delivered –
the community sport network – is creaking.
How do we safeguard these clubs in the face of increasing burdens and bleaker economic circumstances? A good place to start is to ensure that as many clubs as possible consider registering as a Community Amateur Sport Club (CASC).
Charitable value
The CASC scheme was set up by the Government in 2002
and was designed to give amateur sports clubs parity with
charities, and a number of tax breaks are available. They
include:
• 80 per cent mandatory business rate relief. Local
authorities often choose to offer up to 100 per cent relief to
clubs at their discretion.
• The ability to raise funds from individuals under Gift Aid. A
registered CASC can reclaim up to £28 in tax for every £100
donated.
• CASCs are exempt from Corporation Tax on profits from
trading activities if their trading income is under £30,000
per annum.
• Profits derived from property income are also exempt for
CASCs if gross property income is under £20,000 pa.
• CASCs whose income does not exceed these thresholds
will no longer be required to complete an annual
Corporation Tax return.
Around 6000 clubs have registered as CASCs since 2002, and Deloitte estimates that the scheme has saved more than £60m for those involved. Any amateur club that is open to the whole community is able to register as a CASC and share in these benefits. The only requirement on spending the money saved is that it has to be reinvested in the CASC, for instance on improving facilities or coaching.
Just Giving
The main benefit, as far as clubs have seen it so far, has
always been the 80 per cent rate relief. Although Gift Aid is a
fantastic opportunity to maximise donations, claiming it
from HMRC has often been a time-consuming process. To
increase the number of clubs claiming Gift Aid, CCPR
recently joined forces with Sport England and Just Giving,
the fundraising website, to provide a dedicated service that
makes it easier for CASCs to claim. Just Giving, for the first
time ever, is waiving its subscription fees for CASCs. Just
Giving process Gift Aid claims on all donations
automatically, and return all payments – complete with the
Gift Aid supplement – to the club at the end of every week.
All a club needs to take advantage of this service is CASC
status.
Registering as a CASC?
Registering as a CASC is a fairly straightforward process,
and once registered the scheme is very ‘light-touch’. All a
club needs to do is make sure that its constitution reflects a
membership policy that doesn’t discriminate against anyone
in the community, be it on the grounds of race, gender, age,
religion, sexuality, ability or financial capacity. As long as
the club is organised on an amateur basis and reinvests any
annual surplus, the scheme is open to them. CCPR runs a
dedicated website to give clubs a clear picture of all the
requirements, and all the documents a club needs for
registration including a model constitution. Just visit
www.cascinfo.co.uk to find out more.
CCPR’s vision is that every eligible club in the country signs up to the CASC scheme. When they become aware of the requirements and benefits of the scheme, a lot of clubs wonder watch the ‘catch’ is. There really isn’t one - this is a great scheme that can help community clubs make more of their money in the most sustainable, community-focused way.
But don’t just take my word for it - Woodford Rugby Union Club can testify to the scheme’s value. A new pavilion built in 1994 left them £200,000 in debt, but after 2002 they were able to save thousands in rate relief and raise £45,000 through Gift Aid. The club will now celebrate its 80th anniversary debt-free, which was unthinkable before the CASC scheme was created. Club representative David Shepherd glows about the scheme, “It is simple to administer. Staff at Her Majesty’s Revenue and Customs are genuinely interested and helpful in dealing with queries and providing solutions and I would thoroughly recommend it to other clubs.”