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SpoRTA launches charter to tackle sham trusts
The Sports and Recreation Trusts Association (SpoRTA) has developed a Charter of Integrity to tackle the new threat of sham trusts.
SpoRTA is the voice for leisure trusts in the UK and membership is only open to genuine not-for-profit organisations operating sports, leisure and recreation facilities and services, solely for community benefit.
The association was initially launched to provide a voice for the UK's sports trusts to protect them from the threat of changes to VAT exemption legislation applied to government. The association was successful in its lobby to the government and its 100+ members continue to benefit from these exemptions today.
Today, the association is tackling a new threat against sham trusts.
A sham trust is an organisation that is neither truly not-for-profit or independent from commercial influence.
Sham trusts can be set up by private companies in order to apply for rate relief that community leisure trusts benefit from. It is possible to set up a non profit-distributing organisation between the local council and the leisure provider which could be owned by a private company. The private company can then use the 'trust' to apply for rate relief and the trust can then award the contract to run the facility to the private company.
In response, SpoRTA has developed and launched a Charter of Integrity. All SpoRTA members must conform to the principles of operation and standards of governance set out in the Charter which upholds the independent and charitable objectives of a trust.
Peter Kay, vice chair of SpoRTA and chief executive of Fusion, said: "SpoRTA is an invaluable information network and is recognised by our members as the voice of the industry.
“In addition to lobbying it also provides the only open industry forum where colleagues can share best practice and debate industry issues of common concern including product purchasing, HR, finance and marketing. Details: www.sporta.org