Date of issue: 29th September 2003

New Gift Aid Boost to Community Sports Clubs

Gift Aid, which enables charitable organisations to reclaim tax relief on donations, is to be further extended to amateur sports clubs in a move designed to boost sport in the community and encourage the nation to get fit.

The move, announced by sports minister Richard Caborn, has been welcomed by
chartered accountant Joe Bates, a partner with Clement Keys, Birmingham and the financial director and treasurer of Hampton in Arden Sports Club.

"We were delighted with the legislation announced in the 2002 Budget which provided improved tax breaks for Community Amateur Sports Clubs and fully support any additional measures which will help sustain a wide range of cash-strapped sports organisations," says Joe, who has been actively involved in sports club management for 25 years.

The new Gift Aid provision is expected to give sports clubs mandatory relief at 22%, with many eligible for further exemption, and is designed to tackle obesity-related health problems. Statistics show that around 70% of students give up sport when they leave school, leading to health problems which currently amount to a drain on Britain's economy of £2bn a year.

"All sports clubs stand to benefit from Gift Aid, but those which plough resources into improving their facilities will see funds raised via Gift Aid donations significantly topped up by the tax refunds they claim from the Inland Revenue," adds Joe.

"It is clearly in the nation's interest that the Government works in conjunction with community sports clubs to promote exercise as a route to healthy living and we eagerly await further details on this new Gift Aid initiative."