The existing mandatory relief scheme for charities applies equally to any organisation that is a charity. Therefore, sports organisations that are charities and use their premises wholly or mainly for charitable purposes are entitled to 80% mandatory relief.
On 30 November 2001, the Charity Commission announced revised criteria for the charitable status of certain sports clubs. Click on the link for the Guidance
Clubs which meet these criteria will be eligible for the mandatory relief.
The Charity Commissioners recognise the following as charitable purposes:
The promotion of community participation in healthy recreation by the provision of facilities for the playing of particular sports; and
The advancement of the physical education of young people not undergoing formal education.
Not all organisations describing themselves as community sports clubs are necessarily charitable. Along with the general requirements of charitable status, a community sports club seeking charitable status on this basis will need to make its facilities available to all members of the public who wish to use them, regardless of their levels of skill. And the sport concerned must be one that is capable of improving health or fitness.
The criteria that community amateur sports clubs would need to meet to be recognised as charitable are explained in guidance issued by the Charity Commission on this subject.
The date of registration with the Charity Commission should be taken as the effective date for mandatory rate relief (this being conclusive evidence as to charitable status).
Many more sports clubs will qualify for charitable status under the revised criteria.
However, local authorities will still need to consider applications for discretionary rate relief for non-profit making sports clubs which do not qualify for charitable status.
