A CASC - Community Amateur Sports Club - is an HMRC designation for certain types of organisation that, once registered as a CASC, can benefit from various tax benefits, specifically:

• tax relief on income, gains and profits from some activities;

• ability to claim Gift Aid on eligible donations;

• business rates relief.

It is important to understand that a CASC is not a legal form (like a CIC, CIO, company or benefit society); organisations with a range of legal structures/forms can be a CASC if they meet the eligibility criteria.

It is also important to know that a CASC cannot be a charity and a charity cannot be a CASC; while the tax benefits are similar, they are not the same and these are mutually exclusive designations.

Eligilbity

To be eligible to register with HMRC as a CASC an organisation must be based in the UK, provide facilities for eligible sports and encourage people to take part in those sports. A CASC must also:

• have a formal governing document that sets out its purpose and structure including how it meets the eligibility criteria for registering as a CASC and stating that if the club closes any assets must be passed to another CASC, charity or related community sports organisation. The governing document could, for example, be the constitution of an unincorporated association or the memorandum and articles of association of a not-for-profit company (including a CIC);

• be open to the whole community regardless of age, gender, nationality, ability, sexual orientation, religion or beliefs, sex or ethnicity (except when a certain level of physical ability is needed to take part in the sport - membership fees must not exceed £31 a week and if more than £10 per week there must be support for people who cannot pay;

• be organised on an amateur basis including

  • being “not for profit” - i.e. surpluses must be reinvested in the club and spent only on promoting participation and providing facilities for eligible sports;

  • not pay more than £10,000 in total to all players in a year;

  • provide only benefits normally associated with an amateur sports club such as equipment, coaching and post-match refreshments; and

  • only pay expenses for matches and tours where players take part in and promote the club’s sport.

• be managed by “fit and proper persons”.

Registration

To register as a CASC the club’s authorised official or responsible person must apply to HMRC providing details about the club, its constitution, legal form, officials, bank details, finances, etc. A response is usually forthcoming in 3 weeks.

Once registered a CASC cannot deregister. This means that if you decide you can be, and want to be, a charity in the future you would need to set up a new charity, close down the CASC and transfer the assets to the charity.

Pros and cons

As well as benefiting from the tax breaks listed above, there are a few other advantages of being a CASC:

• CASCs are eligible for a few more grant-makers than other not-for-profit organisations, but by no means as many as registered charities.

• Administration and regulation of a CASC is simpler than for a registered charity and there are fewer restrictions on what the club can and cannot do than there are for charities.

• Depending on how your club is set up, it may not be possible to register as a charity (e.g. if the club would not meet the public benefit test for charities advancing amateur sports).

However, CASCs are not as widely recognised as charities and do not have access to as wide a range of funders as registered charities.

To find out more about the governance support we offer for charities and other not for profit organisations please contact us at julian@almondtreeconsulting.co.uk to arrange free initial telephone discussion.