Charity

[Roger de Coverly]

I'm in the process of arguing in another thread that Junior (charitable)/ Adult is a better split that Amateur (charity) / Professional. I think the meagre benefits of Amateur adult chess being in the charity are outweighed by the practical difficulty of separating it from professional chess,

Some thoughts on the "cannot have professional activities under the charity" issue.

Firstly is that if the amateur body is to retain the FIDE affiliation, then all the invites to International events including ones where professional players will take part such as the Olympiad, Euro teams and individual championships are going to be in the name of the charity. Would this prejudice charitable status?

Secondly is about the London Classic. This combines a "professional" event with heavy branding in the name of the charity. I suspect Malcolm knows something the ECF doesn't about the circumstances when a charity can be involved with a top level professional sporting or cultural event.

Thirdly is that the professional body, Chess England, would be under the governance of the BCF, not the ECF. With different membership rights between the two bodies, conflict is possible if not inevitable.

Another possible split is by region. Forget any ideas that the ECF itself can become a charity, but pursue the idea that bodies at lower regional levels, such as the Unions could become the charities. These are very obviously amateur bodies. Some would say in terms of their organisation as well.

[E Michael White]

Secondly is about the London Classic. This combines a "professional" event with heavy branding in the name of the charity. I suspect Malcolm knows something the ECF doesn't about the circumstances when a charity can be involved with a top level professional sporting or cultural event

I suspect this is run as a charity fund raising event. There are advantages in this approach not least potential VAT savings see http://www.hmrc.gov.uk/charities/vat/fundraising.htm. Premises admission fees and promotional literature I would expect to be VAT free. It is possible to employ professionals in FREs. Maybe MP has obtained HMRC agreement that professionals may be paid for their involvement in commentary room analysis. It would probably be worth someone with a Malcolm connection asking him, as I believe the British Championships could be run as an FRE within a charity; would have been easier if MP were a non-exec dir.

Splitting by region would have some appeal; regions could make transfers out of charity funds to an ECF central charity. Regional charities could start new weekend events by raising gift aided one off donations from local wealthy players/supporters. If all WECs were run under a regional charity all those donations on congress walls become worth 25% more. If gift aid is available on member subscriptions the effective proportion of higher rate tax payers among chess players is higher than you might think. The last time I checked a junior subscription could be paid by an immediate family member so junior subs would also benefit; those with an approved granny on income tax taper would benefit almost as much an HRTP while granny could indulge in xmas present arbitrage. A five year membership subscription might prove popular with 17 year olds if there are any still playing.

The biggest change needed is cultural to regard grading as a trivial benefit or at most a summary of the work of a charity where members can view progress of the charity in events held and games played. Also selling promotional merchandise at an FRE eg. score books could prove profitable as input and output VAT can be zero.