Third party agents or internal company lawyers can help firms with applications for the Charitable Status. As a general rule, the particular Irish enterprise has to undergo incorporation as a Company Limited by guarantee before proceeding with the Charitable Status request.
Section 3 (1) of the Charities Act of 2009 states that a charity is an entity whose goals and objectives are totally limited to charitable activities. The target of these activities has to be:
- Minimisation and alleviation of poverty
- Furthering of academic pursuits and interests
- Fostering religious and other faith-based practices
- Other reasons that are generous and philanthropic in nature as it pertains to the society
It is a prerequisite that the intention of a charity has to be to profit or positively impact the generality of the citizenry otherwise its Charitable Status will not get official recognition.
Advantages of being a charity
Entities dealing with volunteer work and society-based activities can garner many positives. Charitable endeavors have a tendency to give off an air of repute, legitimacy , and respect. A larger proportion of donors and sponsors of firms in volunteer work and society-based activities call for official registration as a charity. Furthermore, such an establishment is excused from the need to settle some tax fees and can additionally send application documents for immunity from paying rates for buildings from the Valuation Office.
Application to Become a Charity
The application can receive approval only:
- If the organization fights to alleviate destitution and impoverishment, promotes the furthering of academic pursuits or the progression of religious and spiritual customs or other forms of activities designed to assist in improving the welfare of society
- If such an organisation running its affairs in Ireland undergoes official registration with the Charities regulator
The Revenue Commissioners have set the least expected essentials for Charitable Status as stated below:
- A minimum of 3 unrelated Directors
- The secretary of the organisation
- The least allowable number of members is 3, all of whom can be directors as well
- Some other legal provisions to be included to supplement the constitution of the organisation
Solicitors and other third party agents can help your company draft up all the legal clauses you require for a fee.
Applying for Charitable Status Exemption
Official registration with the Charities Regulatory Authority in the Republic of Ireland does not necessarily imply that your organisation will attain a Charitable Tax Exemption extended by the Revenue department. The acquisition of such a tax privilege occurs if the organisation has official records to prove its registration as a charity, which are then presented to the Revenue Commissioner. The application consists of compulsory filling of the Form CHY1, and subsequent forwarding to the Charities Section of Revenue. It must be accompanied by:
- The up-to-date statements of company finances or specifications highlighting the organisation’s future monetary endeavours
- A description of the undertakings of the organisations as well as forthcoming arrangements
- A duplicate copy of the constitution of the organisation
The procedure for obtaining Charitable Status has lately turned into a sophisticated process chiefly due to the creation of the new Charitable Act statutory instrument, which contains provisions for the setting up of a charity via the Charity Regulatory Authority. For those individuals and companies needing help to navigate these murky waters, contact the many skilled agents and attorneys in Ireland to assist you.