THE IAC AS A REGISTERED CHARITY

[Lee Prescott]

Can or will someone explain to me how come the IAC is a REGISTERED CHARITY??? As far as I know or can realise the IAC does absolutely nothing charity-wise! Why is it accorded this "facility"?

To me a "charity" is a body / organisation which, as a charitable institution, gives FINANCIAL or FREE AID to any that need it. i.e. Royal British Legion, Help for Heroes, SSAFA,
Dogs Trust, RSPCA, PDSA, etc. etc. an endless list almost!

Just where does the IAC fit into this category? To join one has to make a subscription, pay a fee and annually to maintain membership. Certain things are provided such as the Music Licenses, Music and Film Libraries etc. BUT if any member wants to avail themselves of these availabilities- these "extras" -everything has to be additionally paid for!

Even "the advice" has to be paid for per the annual membership fee.

Perhaps I am missing something but my question is: Where does the "CHARITY" kick in? The IAC is a declared registered "Company" not a Charitable Institution.

I am well aware that my friend Dave W will have some answer to my question - OK - with respect...... but for once let's see an explanation from "those in the know" --- The Hierarchy!

Oh yes and let's have "openess" and no more Latency!

LEE

[Geoff Addis]

It's a tax saving (avoidance) measure that is used by many non-profit making societies.

Geoff

[Mike Shaw]

A Charity doesn't have to give money. It can provide support and help in other ways.

I'd say practically all 'non-commercial' organisations and associations 'of a special interest' are also registered as a Charity (as stated in the previous post, there are valuable tax benefits which save the society/association money). Even video clubs can register as a charity, as long as they meet certain conditions - and as a charity, I believe they can apply (for example) for lottery funding to acquire equipment needed for the club members - equipment that they othwerwise couldn't afford.

Examples - Bromley Local History Society is a Charity. Mensa is a charity.
And the IAC is a charity.

[Lee Prescott]

Geoff and Mike:

Interesting. Ta! Thank you: Danke, Merci, Gracias! - For the explanation.

However in respect of the IAC charity-wise, where no financial aid or free support is provided, I can only then assume that it's a method of Tax Avoidance. I wonder now how long it will be before the current "CameronianCleggmanians" will pick up on this aspect in their thoughts on "Tax Avoidance - Cuts and Savings"!!! -- Just a "thought"!

Cheers.....LEE.

[Brian Saberton]

It isn't actually about tax avoidance at all. The scheme is called Gift Aid by which means Tax payers who join an organisation which has charitable status (e.g the IAC) can elect to gift the tax element of their subscription fee to said organisation. The individual still pays their normal tax to HMRC but HMRC pays the charitable organisation the element of income tax on the subscription paid by the individual member.

Obviously this is a very good way of supporting an organisation's activities so the more members that sign up for gift aid the better. Places like Museums and zoos that have charitable status often do this with admission charges.

The money doesn't arrive automatically. The organisation has to submit an application each year with details of the members who participate in the gift aid scheme. There are of course requirements that have to be fulfilled before an organisation will be granted charitable status such as demonstrating what you do and the way your constitution is written. The process is more strictly controlled than it used to be and though I don't know about the situation in England, it is probably similar to Scotland where you have to submit an annual report to OSCR - the Office of the Scottish Charities Regulator - on your groups activities.

[Lee Prescott]

Brian:

Thank you for that information. I am fully aware of the Gift Aid aspect for charities but didn't of course connect that availability to what I know as "Tax Avoidance"! This latter is a different matter entirely. Tax Avoidance should be stamped on hard, we read / hear enough about tax fiddles as it is!

Cheers: LEE.

[Dave Watterson]

Just a note:
tax avoidance is what accountants call legal ways to reduce your tax burden.
tax evasion is how they describe illegal ways of not paying tax.

The IAC does not indulge in either!

Dave