Incentivising and supporting community ownership in sport is a piece of research conducted by Substance which measured the volunteering value and capital investment at 6 clubs in England and Wales – AFC Telford United, Exeter City, Hunslet Hawks RFLC, FC United of Manchester, Lewes FC and Merthyr Town FC.
It found that the gross annual average benefit per club through volunteering value is £126,630 and the gross annual average benefit through capital investment per club is £168,383 – or £295,013 combined.
The research proposes that a new tax status should be created for democratically owned clubs that meet strict criteria, including reinvesting surpluses and protecting assets for community use. Clubs would benefit from Gift Aid on donations, receive 80% rate relief and have exemption from Corporation Tax.
It applied these benefits to the 6 clubs and found that on average they would save £25,664 per year, therefore there would be a net benefit of £269,349 comparing volunteering and investment alone.
It identifies 10 reasons to implement the COSC scheme