Dunvant Rugby Club

MEMBERS NOTICE: SPECIAL GENERAL MEETING (S.G.M.) TO BE HELD ON WED 21st MARCH at 7.30p.m.

Notice is hereby given that a Special General meeting of Dunvant Rugby Football Club will be held on Wednesday 21st March at the Clubhouse, Broadacre, Killay at 7.30p.m.

Dunvant RFC Management Committee have called all Full & Life Members to attend this Special General Meeting( S.G.M). to approve proposed changes to the Club Constitution to allow the Club to achieve CASC status.

COMMUNITY AMATEUR SPORTS CLUB (CASC)

What does it mean to be a CASC?

• Save money for your Rugby Club

• Clubs that have not been granted CASC status are taxed under the same rules that apply to commercial businesses

• CASC status is there to help those clubs providing sporting facilities to their communities

• Gaining CASC status does not effect the club’s legal entity; it is a category for taxation by HMRC


CASC – The Benefits

• 80% mandatory business rate relief

• Possible discretionary further 20% business rate relief to 100% from Local Authority

• Gift aid on individual donations (Currently 25p in the £)

• Corporation Tax exemption on profits derived from trading activities if trading income is under £30k PA

• Corporation Tax exemption on profits derived from property income if gross property income is under £20k PA

• Tax free income from interest and capital gains (used for qualifying purposes)

• Avoidance of Capital Gains on sale of land
•
CASC – Eligibility

• Open membership
• Club must be open to whole community without discrimination
• Fees must be affordable

• Club must be Amateur
• Be non profit making and reinvest any profits back in the club
• Can only provide ‘ordinary benefits’ of membership
• Constitution must require assets on dissolution be applied for similar purposes

• Purpose of club to provide facilities for rugby
CASC – Issues

• “Once a CASC always a CASC”
• Deregistration provisions can trigger Capital Gains Tax liability
• This specifically safe guards against future distribution of profit to members
• But also takes into account clubs that may no longer be adhering to CASC principles

Background/Management Committee Recommendation

Your Management Committee recommends unanimously that Dunvant Rugby Club secure accreditation as a Community Amateur Sports Club (C.A.S.C.) and have called this E.G.M. to allow members to approve the necessary Constitutional changes required in order to do so.

• The Management Committee voted unanimously on 3rd October 2011 to make Application to HMRC to allow Dunvant Rugby Club to be accredited as a Community Amateur Sports Club

• HMRC have declined our initial application on 14th December as our current Constitution does not fully satisfy the requirements of C.A.S.C eligibility, namely:

1. The objectives shown in our current constitution do not fully meet the conditions of the scheme.

These must clearly state: The provision of facilities for and the promotion of participation in the particular sport.

2. The current Constitution does not require the Club to be open to the whole Community;

“Membership” in the context of CASC legislation means Full membership with voting rights. This means that the opportunity to become a full member, on payment of the full membership fee, should not be restricted, even on grounds of age. It is appreciated that junior members would be unlikely to choose this alternative but in order to fully comply with the open membership requirements of the scheme, a Club’s Constitution must not preclude this option.
Clubs operating policies involving proposers and seconders would be seen to be discriminating against candidates who did not have these. As such, the club would not be open to all and therefore not suitable for registration. Similarly, the displaying of a potential candidate’s particulars for comments by other members would fall foul of the same open membership requirement.
3. HMRC would not expect Clubs to grant membership to individuals of proven bad character or with track records of poor conduct. The Governing document must be seen to be open and transparent, and should make provision for a prospective/existing member to be able to appeal to members other than those involved in making the initial decision against the refusal or removal from membership

4. The current Constitution does not require the Club to be organised on an amateur basis.
There must be specific restrictions on the use of assets and income both on dissolution and throughout the life of the Club.

• The Welsh Rugby Union (W.R.U.) recommends that all amateur clubs should seek to achieve C.A.S.C. status.

Proposed Amendments to the Constitution of Dunvant Rugby Club.

Your Management Committee have drafted changes to the Club Constitution which would allow the Club to achieve C.A.S.C. status, subject to HMRC approval of the amendments.
A copy of the Draft Constitution is on the Club Notice Board

• Where a word, phrase or paragraph requires removal it has been struck through with a black line.

• The proposed amendments to comply with HMRC requirements for C.A.S.C. status are shown in red


Special General Meeting

The Special General Meeting to approve the proposed changes to the Constitution will be held in the Clubhouse at Dunvant Rugby Club on Wednesday 21st March 2012 at 7.30p.m.in line with existing rule 33

• Power to vary Rules (33)
These rules may be added to, repealed and amended at any AGM or SGM called for that purpose, provided that no such resolution is passed unless it can be carried by a majority of at least two-thirds of the eligible & present members voting thereon.
• Eligibility to attend
The only persons allowed access to the SGM and voting rights, will paid up Full members of the Club, including Life members
• The Motion
That Dunvant Rugby Club amends the Club Constitution of 2006 in line with the proposed Club Constitution 2012 (C.A.S.C.)

PLEASE SUPPORT THESE CHANGES

PLEASE VOTE YES

Paul Loughlin
Hon.Secretary
CLICK HERE TO VIEW PROPOSED CONSTITUTION:
http://files.pitchero.com/clubs/2447/DunvantRFCConstitutionDRAFTRev2012-a.pdf