Purley Bury Tennis Club Extraordinary General Meeting Monday 11 th September 2017 Move to Change Status of Club to a “Charitable Incorporated Organisation”
Agenda 1. Introduction Chair 2. Why Change Treasurer 3. Q&A All 4. Vote All 5. Close
Legal Status of the Club We are “unicorporated” • The club is not a legal entity - members • individually responsible for any defaults e.g. legal actions, debts, tax etc. We are at the mercy of the council • regarding rates (currently zero but…) HMRC more likely to pursue • unincorporated entities
Options Available 1. Remain unincorporated 2. Limited Company 3. CASC 4. CIO 5. Cooperative Society etc. etc.
Practical Options 1. Community Amateur Sports Club (CASC) 2. Charitable Incorporated Organisation (CIO)
Benefits of Both 1. Mandatory 80% relief on rates plus discretionary 20% 2. Gift aid on donations 3. Assured Tax status
CASC 1. It is a tax regime 2. Administered by HMRC 3. Strict accounting rules. 4. Relatively close control by HMRC e.g. new rules in 2015 inc. affordability 5. Well known – many clubs have taken CASC status 6. Does not provide incorporation i.e. no provision for individual protection
CIO 1. Become a registered Charity and also gain incorporation 2. Administered by Charities Commission 3. Relatively light touch e.g. Accounts only on a P&L and Balance Sheet format 4. Newish (2013) so not so well known – but very popular in Scotland, recommended by LTA and specifically includes sports clubs 5. Additional sources of funding plus Gift Aid 6. Provides incorporation i.e. provision for individual protection
Drawbacks 1. New constitution required 2. Initial admin effort to convert 3. Bar to be set up as a separate entity 4. Accounts to be submitted 5. Membership records to be kept
Next Steps 1. Membership agreement to proceed via vote at this EGM 2. Finalise Bar status 3. Make application
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