Help with Gift Aid & VAT Exemption

Adult Staff
2

There is a letter hidden away on Bader, entitled:

AIR TRAINING CORPS SQUADRON EXCEPTED CHARITABLE STATUS

  1. Currently most Squadron Welfare Funds hold excepted charity status (distinct from exempt status), which was applied for through HQAC to the Charity Commission of England and Wales who then issued an excepted charity number and an acknowledgement certificate, one for the Squadron (blue paper with a red wax type seal on it) and one copy for HQAC records. This policy stems back from the 1960’s when certain charities were excused the requirement to register with the Charity Commission because they were already registered with their own umbrella groups and mainly covered various religious and armed forces charities. This means that Squadron Welfare Funds are exempt from direct Charity Commission supervision because they are considered to be adequately supervised and accountable to HQAC. Excepted charities enjoy the status and fiscal benefits accorded to a registered charity and are required to comply with the key principles of charity law; however, they are not subject to the same administrative requirements as charities registered with the Commission. Instead squadrons submit an Accts Form 60 (ATC summary of receipts and payments) to their Wing for scrutiny and copies must be held for 7 years. However, the Charity Commission can call in the Squadron accounts at any time for checking purposes.

  2. Those excepted charities with an annual income of £100K or over must register with the charity commission in their own right. The £100K threshold is an interim level and may be reduced in the future but this will not happen until there is a further review of the Charities Act.

  3. However, with effect from January 2012 the Charity Commission no longer issues excepted orders/certificates to newly formed squadrons following the legislation change brought in by the Charities Act 2011. Nevertheless, this does not affect the status of current squadron excepted charities or indeed any new squadrons that are formed in the future.

  4. Excepted Charities may however apply to HM Revenue and Customs for a Tax Reference, recognising them as Charities for the purposes of Taxation and Gift Aid.

  5. New squadron charities can prove their status by having a copy of their constitution, objects and the Royal Warrant. None of the above conflicts with the Royal Warrant, or indeed with the relevant internal administrative regulations governing individual squadrons. What determines if any particular ATC Squadron is a Charity and if it is an Excepted Charity, is quite simply its objects and income level.

  6. The Charity Commission of England and Wales have confirmed that the position/status of ATC Squadron charities (both already existing and as newly formed in the future) can be classed as excepted charities.

  7. Full details are in ACP 10 – Administration of ATC Public and Non-Public Funds, Chapter 2 and ACP 11 – Administration of Civilian Committees in the ATC – these publications can be accessed via BADER.

I did a quick search under “charitable” & found this old topic.