Clubs that provide facilities for amateur sport make up an important part of the voluntary sector.
Over 6,000 amateur sport organisations are registered as Community Amateur Sports Clubs (CASC). They benefit from rate relief and some tax relief including the ability to raise funds from individual donations under Gift Aid.
The activities recognised as amateur sports are listed by the Sports Council and range from Angling and Athletics to Volleyball and Yoga with Caving, Tug-of-war and Octopush (underwater hockey) inbetween! The full list is available to download at the bottom of the page.
Registering as a CASC
Local community sports organisations may wish to consider registering as Community Amateur Sports Clubs. These are better known as CASCs. Being registered as a CASC is a status just like being registered as a charity is a status.
In order to register as a CASC a club must meet the following requirements:
- Your club must be constituted and your constitution must include certain clauses (see the model clauses on the cascinfo website for more details)
- Open to the whole community
- Organised on an amateur basis
- Re-invest any profits in the club
- Have a dissolution clause that remaining assets to be distributed to either the sports governing body for use in community sport, or to another CASC or to a charity
- One of its main purposes must be to provide facilities for and promote participation in one or more eligible sports
The advantages of CASC registration are as follows:
- 80% mandatory relief on business rates
- The ability to raise funds from individual donations (this does not include membership fees) under Gift Aid.
- Exempt from Corporation Tax on profits derived from trading activities if their trading income is under £50,000 per annum
- Profits derived from rental income are also exempt if gross rental income is below £30,000
- CASCs whose income does not exceed the above thresholds will not be required to complete an annual Corporation Tax return
Any club that charges more than £10 per week in membership costs will have to offer alternatives such as special discounts for those who cannot afford it. No club will be able to charge a membership fee of more than £31 per week and get the tax relief.
You may be aware that under the Charities Act 2011 the advancement of amateur sport is a charitable purpose. However, the Charities Act also stipulates that an organisation that is registered with HMRC as a CASC cannot be registered as a charity. This means in effect that an organisation advancing amateur sport can be registered as a charity or it can be registered as a CASC but it cannot be registered as both!
You may struggle to decide which road you want to take and you should seek advice re the advantages and disadvantages of each!
Help with CASCs
As of 1st April 2015 the CASC rules changed and existing CASCs have until 1st April 2016 to meet the new rules. The changes relate to
- Increases in exemptions
- The new income limit condition
- The requirement that CASCs have 50% participating members
- Travelling and subsistence expenses
- Payments to players
- Restrictions on the level of membership costs
For full details of the changes go to https://www.gov.uk/government/publications/community-amateur-sports-clubs-detailed-guidance-notes/community-amateur-sports-clubs-detailed-guidance-notes#social-membership
(PDF, 9.4 KB)
List of activities recognised by the Sports Councils at January 2007Download