Charitable Status for WOBYC?

Should WOBYC relinquish “Ltd” and work towards “CHARITABLE” Status?
The Charities Act 2006 recognises the ‘advancement of amateur sport’ as a charitable purpose; thus charitable status is open to sports clubs provided they can meet the conditions laid down in the Act.
The range of benefits available to a charity are wider than those available under the CASC scheme. However, the trade off for this was that historically (at least) charities were more regulated than CASCs (although with the proposed changes to the CASC scheme this distinction may no longer be so evident). (The “CASC” scheme closed in April 2016, but is included for information within some links).

Charities are regulated by the Charity Commission and if WOBYC takes on this status it will be necessary to ensure that the club complies with charity law.

Related Links:
• Charitable Status
• Pros and Cons of Charitable Status
• Tax Comparison – Charity CASC [but remember CASC has closed; remainder of this information table is still valid].

If requiring further assistance please contact the Legal Team
Tel: 023 8060 4223 Email: legal@rya.org.uk.

There are four main legal forms for charities:

*Title*		+ *Advantages* +	– *Disadvantages* –
Trust (Deed or Will)	Trust	Simple & *inexpensive* to set up Simple *Receipts-&-Payments* accounts One regulator- the Charity Commission	No protection from *liability* for the Trustees Cannot have members with a formal role in *governance* No legal personality of its own and therefore *contracts* are entered into by the Trustees.
Unincorporated Association (Constitution or Rules)	UA	Simple and *inexpensive* to set up Simple *Receipts-&-Payments* accounts Can have members who have a formal role in *governance* One regulator- the Charity Commission	No protection from *liability* for the Trustees No legal personality of its own and therefore *contracts* are entered into by the Trustees.
Charitable Incorporated Organisation (Articles of Association)	CIO	Simple *Receipts-&-Payments* accounts (if gross income <£250k p.a.) Trustees have *nil* or limited liability for the debts Can have members who have a formal role in *governance* Has its own legal personality and can enter into *contracts* in its own right One regulator- the Charity Commission.	Must use *Accruals* accounting (if gross annual income >£250,000 p.a.) New form of *governance, therefore not yet tested (a CIO* does not come into existence until it is registered by the Charity Commission) There is *no register of charges* for a CIO as there is for a company.
Company Limited by Guarantee (Constitution)	CLG	Trustees (Directors) have *limited liability* for contractual liabilities Can have members who have a formal role in *governance* Has its own legal personality and can enter into *contracts* in its own right Better option if charity is likely to want to issue *debentures* (or bonds).	More *complicated* and/or expensive to operate – a CLG does not come into existence until it is registered by Companies House and needs subsequently to be registered by the Charity Commission Must use *Accruals* accounting no matter how much income it receives Two regulators- the Charity Commission & Companies House.