Community Amateur Sports Club (CASC)

1. Community Amateur Sports Club (CASC) Claire Howe

2. Workshop Outcomes By the end of the workshop, participants should be able to: • recognise the advantages of becoming a CASC • describe the processes required to apply for CASC status • list the areas of development in order to apply for CASC status • understand the key elements of a successful application.

3. Background to the CASC Programme • Introduced by the Chancellor in April 2002 • Recognised by the government and HMRC with regards the important role played by sports clubs in local communities • Allows clubs to access many of the benefits of charitable status without the accompanying administrative responsibilities.

4. CASC Facts and Figures • In <<tutor to insert date of latest report here>> Deloitte estimated that: • xxx clubs were registered • clubs have benefitted from an estimated £xx million in savings since 2002 • Top 10 sports to register were: <<insert visual (pie chart) here>> Source: Deloitte Monthly Analysis of CASC Registrations, January 2010.

5. Benefits • Clubs gain a mandatory 80% rate relief • Local authorities may grant a further 20% rate relief • Free registration with JustGiving to raise money through Gift Aid • Clubs receive Gift Aid on donations from individuals by reclaiming 25p of every £1 donated.

6. Corporation Tax Benefits CASCs are exempt from corporation tax on: • bank and building society interest • profits from trading and fund-raising, where gross income is less than £30,000 per annum • income from property, where gross income is less than £20,000 per annum • chargeable gains • Gift Aid donations.

7. JustGiving for Sports Clubs • A joint initiative, with SaRA and Sport England, which makes it easier for sports clubs to raise money and claim Gift Aid • Free subscription to JustGiving – worth £180 per year – for all CASCs • Allows club members to raise money more easily, quickly and efficiently • JustGiving complete all the administration • Payments are made weekly • People on hand to give advice.

8. JustGiving Case Study Ashley Cricket Club, Cheshire: • Needed new covers and joined JustGiving • Raised £480 in two weeks through fun runs and moustache-growing competitions • Claimed an additional £140 in Gift Aid • Promoted their JustGiving page on Facebook, club website and emailed friends • They received donations from far and wide.

9. CASC Registration To qualify for CASC status, a club must: Q15. make its facilities available and encourage participation in eligible sports Q16. be open to the whole community without discrimination Q17-18. reinvest its profits into the club Q18. have an appropriate dissolution clause in its constitution Q22. be organised on an amateur basis (coaches can be paid) Q23. have reasonable membership fees Q24. have more ‘playing’ than ‘social’ members Q25-32. have officers and managers that meet the ‘fit and proper persons’ test.

10. ‘Fit and Proper Person’ Test The test of someone who is considered inappropriate is likely to include anyone who: • has a history of fraud involving tax misrepresentation or identity theft • is known to HMRC for involvement in attacks against or abuse of tax repayment systems • has information or evidence pointing to a heightened risk of involvement in other fiscal or financial impropriety • is barred from acting as a charity trustee by a charity regulator or court, or has been disqualified from acting as a company director. Clubs that do not carry out these checks risk losing the benefits of being a CASC.

11. CASC Applications Top reasons for rejection: • Not being mainly for the provision of sports facilities and the promotion of eligible sports • Lack of an open membership clause in the club’s constitution or evidence that this is being delivered • Potential members have to be known by an existing member or introduction by another club • Selection by ‘black ball’ • No appeal on refusal of membership • Inappropriate or missing dissolution clause.

12. Task Victoria House Sports Club has applied to become a CASC. You have copies of the club constitution: • Should the club be registered as a CASC? • What other advice can you give?

13. Task Answers Victoria House Sports Club Constitution: • Clause 2 A need to promote facilities and participation • Clause 3(e) Cannot pay players (could if also coaching) • Clause 4(a) Cannot discriminate on the grounds of ability • Clause 4(c) There should be no ‘black balling’ – the club must have an appeals process • Clause 5(a) No discrimination is allowed • clause 9(a) Once a CASC, always a CASC • clause 10(c) No members are to benefit and they cannot transfer to an organisation not known by HMRC • The final signatures may not be legal.

14. Model Constitution Clauses You will need to consider the following elements: • the name of the club • its purpose – taking into account the sport(s) that the club will promote • membership – who it is open to, the different types, conduct, etc • periods of notice, rules and quorums for AGMs/EGMs • the numbers on the committee • the powers of the committee • statements about property and funds • dissolution statements.

15. How to Apply You will need to send the following to HMRC: • a completed application form • a copy of any prospectus, members’ handbook, rule book and any other relevant document. • copies of the last three months of the club’s bank statements • a copy of the club’s governing documents (ie constitution or memorandum and articles) • a copy of the club’s latest accounts.

16. Possible Outcomes • Successful application – you will be informed of the date from which you have been registered • Referred application – you may be asked to change some of your rules that do not comply with the scheme • Unsuccessful application – you may be refused because of more fundamental reasons and you may be advised not to re-apply • You could revert, if unsuccessful, to the appeals process.

17. What to do Next • Go back to your club and discuss the outcomes of this workshop with the committee • Ensure your members know that they are relinquishing their rights to share in the assets of the club • Consult the advice available (see websites) and complete the application form accurately • Complete the application form as soon as possible if you decide to go ahead.

18. Useful Contacts • SaRA: www.sportandrecreation.org.uk • CASC information website: www.cascinfo.co.uk • HMRC: www.hmrc.gov.uk and search for CASC or call 0845-302 0203 • JustGiving: www.JustGiving.com/sportsclubs or call 0845-021 2133 • runningsports Quick Guides: • Taxation and Sport (pages 5–7) • Fund-raising, Grants and Sponsorship (pages 4–9).

19. Workshop Outcomes By the end of the workshop, participants should be able to: • recognise the advantages of becoming a CASC • describe the processes required to apply for CASC status • list the areas of development in order to apply for CASC status • understand the key elements of a successful application.

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