Sailing Clubs and CASC Status

[DJE]

Does anybody else have experience of registering a sailing club with HMRC as a "Community Amateur Sport Club"? It appears that clubs can be held to be ineligible on the grounds of discrimination if they require all members to take a turn performing duties such as bar steward, race officer, or safety boat crew.
I'm against registering in principle as the benefits are small in return for letting the HMRC meddle with the rule book, and the possible penalties if found in breach at some future date would be crippling.

 

[Keith 66]

Some years ago a club we both know! looked at gaining CASC status.
It seems to be aimed & suited primarily at the club that rents or leases its facilities from local authorities etc, It will give mandatory 80% rate relief with the other 20% discretionary
An open membership policy is required and equal oportunities policy.
Also termination & Dissolution clauses have to be in the rules basiclly no bad thing as they are designed to prevent asset stripping in the event of a club folding up.
In our club's case it was felt by many that as we owned the large site freehold it would be unwise to effectively sign it away to the inland revenue!
The other objection was that once a CASC always a CASC, ie there is no way out and no one could or would tell us what the penalties would be if the members voted to opt out in the future!
If a club desires large scale lottery funding & is leasing its land & or premises it may make sense as CASC clubs are looked favourably on by funders.
Another local club Leigh sailing Club did go down the CASC road but i dont know why or how its worked out for them, may be someone on here that knows?

 

[toad]

My club also looked into this but as we owned the site we would be in effect be signing it over to the government.

 

[Leighb]

Our Club also looked at this in great detail a few years ago, and we had a full debate at a General Meeting. The proposal to become a CASC was thrown out with few in favour.

One of the concerns was that there is no way out, and no guarantee that the current advantage of 80% Rates discount might dissipate in later years. Do you trust government was the question asked?

There were some other issues which were more theoretical such as what might happen to the Club's assets should it be wound up.

 

[waterbuffalo]

And you have to open your facilities to all other CASC clubs in the area.
Our rugby/cricket club looked at the possibilty of going CASC but the few benefits were totally out weighed by the disadvantages.

 

[Seven Spades]

Looking a the docs you would have to be mad to want to join this scheme. It says that if you want to cease to be a CASC a virtual sale of all the assets would take place and a CGT bill would arise on the value thereof. The result would likely be that the club would be wound up and unable to survive.

 

[DJE]

Thanks for the replies. They seems to confirm my feelings about the scheme. Now I've got to convince the accountants that a few thousand in tax savings aren't worth the sacrifice and risk.

 

[Kurrawong_Kid]

There seems to be a lot of doom, gloom and prejudice stated here without a careful look at the other side of the coin. Two dinghy clubs of which I am a member have taken CASC status. No problems so far but several advantages. The rate relief is very welcome and would apply to any Club, whether the freehold is held or not since rates, as opposed to rent, are paid by all properties. Gift Aid can be claimed on special fund raising projects, but specifically not subscriptions. Concessions are allowed against a deceased members probate if a CASC club is the recipient of a legacy.
One Club has asked members to "buy a chair" and the Gift Aid additional (20%?) relief has been very welcome. Donations for a major project would benefit very considerably.
Both Clubs have decided that if they did fold their assets would be transferred to another RYA affiliated local club.
I don't quite get the statement that members of local rugby clubs would be able to us the facilities. Both of the dinghy clubs still have control of their membership. They must not however unreasonably discriminate on the grounds of gender, race, disability etc. but that is the law of the land anyway.
I agree that the fact that there is no going back is a substantial disadvantage, but having to pay the full cost of rates and consequent additional subscriptions is also a disadvantage.
2 further points. Sport England do an excellent guide to CASC. There is a CASC users group. Sorry I dont know the address.
Each Club will need to examine their own circumstances, but I would advise that the decision is based on reason, not emotion.