Applying for Charitable Status
The English Bridge Union has recently concluded discussions with The Charity Commission to provide a standard application process for those EBU affiliated clubs which wish to apply for charitable status as a CIO (Charitable Incorporated Organisation).
This section of the EBU website contains all the resources and guidance that your bridge club will need to make such an application.
You will need to complete the Approved Governing Document (AGD) which is a variation of the EBU’s Model Club Constitution – please contact us on 01296 317200 to obtain this document. This document will replace your club’s current constitution so be sure to study it very carefully and understand the implications of its content. You need to fill in the blank portions of the document appropriately as you will need to submit the completed documents with your application (see below). Please use the accompanying notes to help complete the AGD (the link to these notes is on the right hand side of this page).
- To check that the club meets the minimum requirements for charitable status please follow this link: http://www.charitycommission.gov.uk/detailed-guidance/registering-a-char... or download the guide as a pdf here: http://www.charitycommission.gov.uk/media/535720/cc4text.pdf
- Now read the guide on How to set up a Charity at: http://www.charitycommission.gov.uk/start-up-a-charity/setting-up-a-char...
- To then proceed with an application follow this link: http://www.charitycommission.gov.uk/start-up-a-charity/registering-your-...
- Further guidance is also available at http://www.charitycommission.gov.uk/start-up-a-charity/registering-your-...
- The Charity Commission will expect to see in any applications full answers to the questions asked in particular those around public benefit so follow this link for information: http://www.charitycommission.gov.uk/detailed-guidance/charitable-purpose... Also see the link to the Model Answers document on the right hand side.
Gift Aid on Bridge Club membership subscriptions
Gift Aid is generally only available on payments made as gifts to a charity. Payments in return for benefits are not eligible unless the benefits are of token value, within specified limits. Many bridge clubs charge an annual subscription for membership in addition to table money. HMRC state that where the club is a charity and the membership fee simply gives the basic rights of membership and does no more than cover basic administration costs, it could regard the membership subscription as a gift qualifying for gift aid. Hence bridge clubs
- 1. registered as a charity with the Charity Commission; or
- 2. with a turnover of less than £5000, who can’t register with the Charity Commission but meet the requirements to be a charity
may be able to claim Gift Aid on the annual membership subscription for anyone who pays tax by registering with HM Revenue and Customs (HMRC). The HMRC guidelines on this issue are detailed in Chapter 3.37 of https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid
We believe a number of bridge clubs, which are registered with HMRC as charities, are successfully claiming gift aid on their subscriptions and this is providing significant help towards the running costs of the club.
The EBU is not in a position to provide detailed individual advice but we recommend that clubs considering applying to HMRC should ensure:
- 1. they have read and understood the HMRC guidelines
- 2. they are either registered as a charity with the Charity Commission or if they have an annual income of less than £5000 that they meet the charitable purpose and public benefit requirements of charity law
If clubs are in any doubt about the applicability of either of these principles to their situation, then we recommend they seek professional advice.
The ‘Downloads’ menu on the right hand side of this page has a sample Gift Aid Declaration Form, a sample HMRC application form and a document describing the registration process.
If you need further assistance then please contact us on 01296 317200.