BIM24340 - Mutual trading:
community amateur sports clubs: non-profit making and
‘ordinary benefits’
What is non-profit making?
You should refer any application to be accepted as a
community amateur sports club to CAR (Charities).
A club is ‘non-profit making’ for the purposes of
this legislation (FA02/SCH18/PARA3 (2)) if its constitution
requires any surplus income or gains be reinvested in the club and
does not permit any distribution of club assets in cash or in kind
to members (again this condition precludes the club from carrying
on a mutual trade) or to third parties.
The ‘ordinary benefits’ of an amateur sports club
are (FA02/SCH18/PARA3 (3)):
- provision of sporting facilities,
- reasonable provision and maintenance of club-owned sports
equipment,
- provision of suitably qualified coaches,
- provision, or reimbursement of the cost, of coaching courses,
- provision of insurance cover,
- provision of medical treatment,
- reimbursement of reasonable travel expenses incurred by players
and officials travelling to away matches,
- reasonable provision of post-match refreshments for players and
match officials,
- sale or supply of food or drink as a social adjunct to the
sporting purposes of the club.
