Governance: CASC and Charity Outline DAVE STUBLEY RFU CLUB MANAGEMENT & GOVERNANCE MANAGER

1. Governance:CASC and Charity OutlineDAVE STUBLEYRFU CLUB MANAGEMENT & GOVERNANCE MANAGER

2. Outline of the Session • CASC overview • Charity overview • HMRC Consultation • Gift Aid and small donations • CASC helpline / Next steps and support

3. CASC and Charity Rugby Registrations • 432 CASCs in Rugby Union (6342 CASC’s across all sports) • Estimated value to Rugby Union CASCs to date is over £8m • £140.5m across all sports • Several rugby union club charities (Topsham, Dorking) • Comparison table (Hand out)

4. CASC Benefits • 80% mandatory business rates relief • Small Charitable Donations Scheme available • For every £1 donated club receives 25p in Gift Aid  • Limited exemptions from corporation tax on trading profits and income from property • Exemption from Corporation Tax on interest and gains • Legacies and gifts free of inheritance tax • From April 2014 CASC’s (and Charities) will benefit from the new £2000 NIC employment allowance announced in the 2013 budget

5. Requirements to become a CASC The club must: • be open to whole community • be organised on amateur basis • have main purpose of provision of facilities for, and promotion of participation in, eligible sports • be managed by fit and proper persons

6. Current CASC Issues • HMRC Consultation document • Proposed changes to eligibility criteria around • Membership costs • Payment of player(s) • Travel expenses • Definition of social member • Social Income test • Gift Aid on Corporate Donations • Proposed increases to corporation tax thresholds

7. Current CASC Issues • 45 page document – 32questions!!!! • RFU will provide further guidance • Social Income Test – significant issue • Aims to limit amount of social income that can be generated • Proposes trading subsidiary

8. Extra Benefits for Charities • Tax relief on donations from companies • Gift Aid on some junior subscriptions • No VAT (zero rating) on some new facility projects • Full exemption from Corporation Tax on capital gains, interest, trading profits and property income • Charity brand

9. Main requirements to become a Charity • Charitable purpose must generally be the advancement of amateur sport • Must exist for the public benefit • Must be managed by fit and proper persons • If a club, membership must be open to the public • Cannot distribute profits or assets to members • Wording of constitution vital

10. Gift Aid for Charities and CASCs • For every £1 donated by an individual, club receives 25p in Gift Aid • 40% higher rate tax payer receives 25p. 45% additional rate taxpayer receives 31.5p in tax rebates • Over £12 million claimed to date by CASC registered clubs • Online giving reduces administration and speeds up payment • Charities online - HMRC processes

11. How to use Gift Aid • Gift – nothing in return • Donations • Volunteer expenses • Subscriptions • Sponsored walks • Events

12. Small Charitable Donations Scheme • Very new - April 2013 • Value up to £1,250 p.a. • Cash gift of £20 or less • Top up of 25% from HMRC • Reduced paperwork • Conditions – 2 years / 10%

13. Your Fund Raising Ideas • Gift Aid • Small donations

14. CASC Helpline

15. Next Steps and Support