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Some local Leagues and the National Executive have registered as charities in their own right. It is open to all individual Leagues to apply, if they so wish. The advantages are probably greater for the large Leagues.
The LLF Constitution and Procedure was written with charitable status in mind and the format is acceptable to the Charity Commissioners. Leagues wishing to apply should refer to the National Executive Committee who can assist with the registration and provide valuable advice.
Charitable Status means that the members of the League Management Committee become the Trustees of that local League.
Advantages
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Advice,
information
and help from the NEC, other
charitable
Leagues and
the Charity
Commission
is available
- see Section 33. |
- Charitable status confers a certain respectability (whether justified or not)
- Requests for sponsorship, donations etc are more likely to be looked on favourably. Many companies automatically bin requests for money coming from non-charities.
- Individual Memberships and other donations to the League including sponsorship donations by individuals, may be made under Gift Aid, with valuable tax advantages. Donations by companies may be offset against profits if classed as advertising - e.g. team sponsorship.
- Investment income is normally tax free. (But there are no VAT advantages to Leagues.)
Disadvantages
- The Charity Commission will require you to conform to charity law. This means some bureaucracy, which varies depending on how much your income is each year.
- There is a little extra paperwork for the Secretary in filling in forms.
- Your Treasurer must keep and present the accounts in a certain format. Simplified accounts may be presented to your committee meetings, but the annual accounts must be in the laid down format. It is not necessary for the Treasurer to be an accountant, but book-keeping experience is essential.
- For the bigger leagues, someone (usually your Chairman) must produce a report each year on what your League has achieved, and plans for the future.
- No admission charges to events on Sundays can be made, although programmes for such events may be sold.
Your Charity Number must be quoted on all fundraising documents. |
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