Business rates - Charity Relief
There are a number of relief schemes available for charities, clubs, societies or other organisations not established or conducted for profit.
Mandatory Rate Relief
Charities are entitled to relief on any non-domestic property that is wholly or mainly used for charitable purposes. Relief is given at 80% of the full rate bill or of the transitional bill where this applies. This is called Mandatory Rate Relief.
An organisation that is not registered with the Charities Commission may still qualify for relief if it is exempt from registration e.g. church commissioners, friendly societies, Boy Scouts and Girl Guides and any not for profit company that is established for charitable purposes.
Discretionary Rate Relief
We also have the discretion to remit all or part of the remaining 10% of a charity or not-for-profit organisation's bill. This is known as Discretionary Rate Relief.
If an organisation is not a charity, but was set up for religious, social welfare, artistic, educational or recreational purposes, and is not run to make a profit, we can grant up to 90% relief.
Certain not for profit organisations that receive grant funding from East Hampshire District Council may be entitled to relief in respect of 100% of their bill.
How Discretionary Relief is decided
Each application submitted is considered on its own merits.
Whilst we try to support every organisation which fulfils the
criteria , the amount of relief offered, and the period for which relief is offered, will be influenced by the fact our resources are limited.
When an organisation applies, we need to know:
- The rules under which it operates
- Membership
- Subscription sales
- Accounts
How EHDC decides on applications for Discretionary Rate Relief
There are several questions we will ask:
Is the organisation's membership open to all sections of the community?
There may be legitimate reasons why the activities of an organisation are limited to certain sections of the community. However, should an organisation force exclusivity through high membership fees or the votes of existing members, the organisation is unlikely to be granted relief.
Are most of the organisation's members East Hampshire residents?
As any award of relief will be subsidised by the council tax payers of East Hampshire this will be an important consideration. However, this may not necessarily be a disadvantage for any organisation which may straddle several districts, or is located near the boundary with other districts.
Are the organisation's facilities available to people other than members?
Organisations that actively encourage other community groups, such as school children, to use its facilities will be favoured. The organisation must provide evidence to support this.
How prepared is the organisation to help itself?
Organisations that have raised some of their funds towards providing and developing their premises, may be favoured over those who have relied totally upon grant aid.
Does the organisation actively encourage new members?
Organisations that actively encourage priority groups such as young people, women, ethnic minorities, the elderly or people with a learning or physical disability, will receive preference.
Does the organisation provide training and education to its members and others?
We encourage the provision of knowledge and skills particularly to young people e.g. sports coaching.
Does the organisation operate a licensed bar?
If a licensed bar is operated as a social function of the organisation, and not solely for profit, this will not be a disadvantage. However, where there is an imbalance between social members as opposed to active participants, this will not be favoured.
Does the organisation provide facilities which complement or supplement those being provided by the council?
We want to encourage a wide and even spread of public facilities, and whilst not against competition, we must try and avoid needless duplication.
Does the organisation really need relief?
If relief would enable an organisation to either survive or to develop in new and innovative ways, this is likely to be more favoured, than in cases where relief would represent a relatively insignificant supplement to an organisation's assets.
What other forms of assistance is the organisation receiving from us?
Any grants or other support which an organisation receives must be taken into consideration. Recipients of grant aid will not be penalised, but it is important for us to know there is no duplication of support.
How to apply for relief
Application forms for Rate Relief are available from the Business Rates section using the customer feedback facility , email revenues@easthants.gov.uk or telephone (01730) 266551.