Clause 5(4) refers to Community Amateur Sports Clubs, also known as CASCs. These were created by the Finance Act 2002; the details are in Schedule 18 of that Act. Sporting organisations that fall within the parameters set by the Finance Act can register with the Inland Revenue and receive certain tax concessions.

Clause 2(2)(g) of the Charities Bill provides that “the advancement of amateur sport” is a charitable purpose. Under English law, an organisation is a charity if it is established for exclusively charitable purposes. So, in theory, an amateur sport organisation, registered with the Inland Revenue as a CASC, could also (inadvertently) be a charity, under the “advancement of amateur sport” head.

As a charity, such a CASC would be obliged to comply with charity law. In many cases, it would also be obliged to register with, and be regulated by, the Charity Commission.

By saying that CASCs established for charitable purposes are not to be treated as being so established, Clause 5(4) seeks to draw a clear dividing line between CASCs and charities and ensure that CASCs do not find themselves subject to charity law and regulation.