A Sporting Chance - Charity Commission Publishes Latest Public Benefit Assessments

The Charity Commission has published its latest detailed public benefit assessments on specific charities: this time, dealing with sport and leisure charities.

This follows previous similar reports for charities in the fields of arts, care, religion and independent schools. So, what can be learned by other charities?

Hauke Harrack, from Hewitsons' Charities Team, says firstly most charities will be aware by now that there are no longer any presumptions when it comes to public benefit. All charities must demonstrate they deliver activities which are of benefit to the public as the Charities Act 2006 – and the Commission – sets out.

The Courts are due to hear challenges on public benefit and the Commission's approach to this in May, but until we know the outcome of that the Commission's conclusions are paramount both for charities starting out and those which are well established. These reports, then, are crucial in setting the standards for all charities.

For this latest round of public benefit assessments, the Commission chose four recreation and leisure charities, namely Tintagel Memorial Playing Fields Association, Wigan Leisure and Culture Trust, Birmingham City Football Club Community Trust, and Radlett Lawn Tennis Club. The reports (as well as other public benefit reports) can be found here.

All but the tennis club were found to be delivering public benefit. The Commission took the view that the tennis club 'does not provide sufficient opportunity to benefit for those who cannot afford the charity's annual membership fees'. The club's trustees have now been invited to prepare a plan to deliver public benefit for the Commission's approval. In all likelihood, they must provide a certain number of subsidised or free places for the less-well-off.

Hewitsons' Hauke Harrack commented: "These assessments may be few but they are critical for the charity sector in understanding what is expected of them. For many charities public benefit is not a difficult issue. However for some there are difficult challenges, such as where fees are charged, beneficiaries are selected on certain criteria, or the focus is in an area which is at the edge of acceptability for a charity, such as with  political activity."

Time will tell whether the Court case on public benefit in May produces the clarity this area of law needs. Meanwhile, if charities have doubts on meeting the public benefit test, or on any other issue relating to their charity, please contact Hauke on 01604 233233 or email him here and he or another member of the Charities Team will be pleased to help.