The Sailing Club’s Annual General Meeting voted on Saturday 29th January to convert the Sailing Club into a Charitable Incorporated Organisation.
Several other Sailing Clubs are Charitable Incorporated Organisations including Thames, Prestwick and Flushing, near Falmouth. The Club would continue to be a members’ club run by its members.
Current Status of Club – Unincorporated Association
At present the Club is legally an unincorporated association, where a group of people come together for a common aim. Whilst income from members is not taxable, income from non-members is. The Club has income from non-members coming to music nights and going on training courses. As the Club is not incorporated or limited, members have a potential liability for the club debts
Advantages of becoming a Charitable Incorporated Organisation
The advantages of becoming a Charitable Incorporated Organisation include
- The Club would not need to pay tax on trading income from non-members coming to music nights or going on training courses.
- Donations to the Club would be eligible for 25% tax relief
- Grant funding should be easier to obtain.
- The Club would be incorporated (or limited) meaning the members would not have any liability for debts of the club.
- The Club could directly hold property rather than the property being held by trustees for the club
Possible Requirement to set a Bar Trading Subsidiary
We may be required to set a separate bar trading company by the Charity Commission. The trading company would donate all its profits to the new Charity tax free. It would be dependent on whether having a bar is integral part of running a music venue, whether people come into the venue primarily to drink or listen to music and whether bar profits are seen as supporting the venue. A museum for example can have a café without needing to set up a separate trading company. Neither Thames or Flushing Sailing Clubs needed to set up a bar trading subsidiary.
Charity Constitution and Bylaws
The Sailing Club’s current Constitution would be replaced by a new Charity Constitution.
You can view the Club’s existing Constitution below
Arnside Sailing Club Current Constitution and Rules
You can view the proposed new Charity Constitution below
Proposed Arnside Sailing Club Charity Constitution
The new Charity Constitution is based on the standard Charity Commission Constitution for an Incorporated Charity. The main thing that varies between Charities is a Charity’s objectives. The club objectives would include sailing, water sports, training, promoting the village’s maritime heritage, running music nights and supporting the local community by promoting volunteering and making our club house available for use by community groups.
The Club would also have bylaws, which are in effect anything not in the new Charity Constitution that is currently in the existing Constitution. The Bylaws cover things such as the role of Club Officers, membership categories, sale of alcohol and disposal of abandoned boats.
You can view the proposed Bylaws below
Conversion Process
Legally the conversion process is to dissolve the existing unincorporated club and transfer its assets to the new charity