Small Charitable Donations Act 2012

Small Charitable Donations Act 2012

2012 CHAPTER 23

Commentary on Sections

Section 7: Meaning of “running charitable activities in a community building” etc

47. Section 7 specifies what is meant by a charity “running charitable activities in a community building” for the purposes of sections 6 and 9. This does not include CASCs so a CASC does not benefit from an increased entitlement on account of community buildings. Each CASC is entitled to a specified amount under section 1 of £5,000 only.

48. In essence, “running charitable activities in a community building” means the charity must carry out charitable activities for a local group of beneficiaries of the charity in the same building on at least six occasions each year. Subsection (1) sets out the basic conditions that must be met. These include a requirement that meetings are held on a minimum of six occasions each year when the charitable activities take place in a community building and a minimum of 10 people who are beneficiaries of the charitable activity must attend on each occasion. Group members must not be charged to access the community building or the part of the building in which the activity is carried out. The purpose of the conditions is to define the characteristics that would apply to a local group of a charity that had its own local identity and was recognised publicly as a discrete group of the charity.

49. It is not necessary for the same people to attend each of the group activities throughout the year. The conditions applying to the group are designed to ensure that the meetings held by the charity in running its charitable activities are more than just, say, planning meetings in which the administrative affairs of the charity are discussed and also to deter the organisation of meetings just to benefit the charity with an increased entitlement under section 6.

50. Subsection (3) of section 7 gives the Treasury the power to vary the minimum number of people who must attend meetings and the minimum number of occasions during the year that the meetings must take place. The Act specifies that meetings must be of a group of 10 or more people, and meetings must be held on 6 or more occasions during the year.

51. Subsection (4) of section 7 defines “charitable activity” and excludes activities that are carried out primarily for the purpose of fundraising. This means charities only receive an increased entitlement in respect of community buildings where the activity undertaken in those buildings is in fact part of the charity delivering its charitable objectives for the benefit of the charity’s beneficiaries, rather than raising funds.