parent nodes: Connected Charities List | Introduction
Connected Charities
See also http://www.hmrc.gov.uk/charities/gasds/connected-charities.htm
http://www.hmrc.gov.uk/charities/gasds/small-donation-max-limit.pdf
Where charities or Community Amateur Sports Clubs (CASCs) are 'connected' in a tax year and are eligible for the Gift Aid Small Donations Scheme (GASDS), then the small cash donations received by each of the connected organisations are pooled. The connected organisations are then subject to a single 'maximum small donations limit' of £5,000 which is shared between whoever of them claim under the GASDS.
What is a connected charity or CASC?
In broad terms, a charity or CASC is connected to another in a tax year if they:
have the same or substantially similar purposes and activities
are controlled by the same or connected persons.
Examples of connected charities are:
a local charity that is separately established, but operates as a branch under the control of a national ‘lead’ charity
where at least half of the trustees of one charitable trust are trustees of the other charitable trust
where a charitable company’s managers can be appointed and dismissed by another charity’s managers
Charities or CASCs with trustees in common
If a charity or CASC has trustees in common with another charity or CASC but they are completely different organisations it doesn't necessarily mean that they are connected. For them to be connected their purposes and activities must be the same or substantially similar. If not, then they will not be treated as connected for the purposes of the GASDS.
Connections between trustees or directors of charities or CASCs
If one or more of the trustees or directors of a charity or CASC (but fewer than half) are also trustees or directors of other charities or CASCs, or are connected to people who are, you will need to find out the following from the other charities and CASCs involved whether:
50 per cent or more of their trustees or directors are trustees or directors of your charity or CASC, or
they are connected with the trustees or directors of your charity or CASC, for example by reason of family relationship
the other charity or CASC has the same or substantially similar purposes and activities to your charity
If they are, your charities are connected. See the section below for more information and examples on connected charities.
Common examples of connections between charities and CASCs
Here are some examples of when charities or CASCs are or are not connected.
Example one
Anne and John are the only trustees of Charitable Trust A. At the same time Anne is one of four trustees of Charitable Trust B. Both trusts undertake the same activities. Charitable Trust A is connected to Charitable Trust B because Anne, who constitutes half the trustees of A, is also a trustee of B.
If trust A had a third trustee, who is not also a trustee of B, or is not connected with a trustee of B, then the trusts would not be connected for the purposes of the GASDS.
Example two
Charitable Company A has five directors. However, three of these directors are appointed by the directors of Charitable Company B. Further, the directors of Charitable Company B can veto any decisions made by the directors of Charitable Company A. Charitable Company A is controlled by Charitable Company B, and therefore connected to them.
Example three
A village has a primary school and a nursery school. They have substantially the same purposes and activities, the education of children, so they may be, but are not necessarily, connected charities. Whether they are connected will depend on whether they are controlled by the same or connected people.
Example four
A zoo, a school and a museum may have connected directors or trustees and have similar purposes, the advancement of education. However, because their activities are substantially different, the separate charities are not regarded as connected to one another.