Dear All,
Yesterday we received a letter from the UK Tax Authorities rejecting our application for recognition as a charity. Citing a legal precedent, they stated that "the production of an encyclopaedia is not the charitable advancement of education" and therefore we were not established for exclusively charitable purposes. The ruling they gave stated that "If the object be the mere increase of knowledge it is not in itself a charitable object unless it is combined with teaching or education".
The full letter from the HMRC is copied below with some explanatory notes added in { }
Their objection goes to the heart of what we have been established to do. On the surface, it does not appear that any different wording in our constitution or correspondence would have given us a different outcome. Nonetheless, the legal issues may be arguable - our job is not just to produce content in isolation, but also to spread that knowledge and make it accessible to all. I should imagine this will come down to the finer points of law, and it is probably best to engage a lawyer at this stage when we appeal.
If we had applied to the Charity Commission before HMRC the application would have been considered by different lawyers but the same law would apply. Therefore, it is likely that we would have come up against the same problem.
I'm contacting the Foundation to ask them if they are aware of any lawyers familiar with UK law who could help us pro-bono on this.
I'm also sending a note to our MP to thank him for his help in speeding this up: although it is disappointed to get this response, it is better to get it now that in 3 or 6 months' time.
In the meantime, we should probably stop referring to ourselves as a "charity" or an "exempt charity". Before receiving this letter it was reasonable for us to do this as that was our honest view. Now we know there is some disagreement over this, I suggest we should describe ourselves as a "not-for-profit" instead. Whilst we can still get Gift Aid declarations (HMRC have previously confirmed this was ok) we should probably add a caveat on the form explaining that our charitable status is contested.
Regards,
Andrew Turvey
Secretary, Wikimedia UK
=========================
Company Secretary
Wikimedia UK
23 Cartwright Way
Beeston
Nottingham NG9 1RL
Date: 17 April 2009
Dear Mr Turvey,
Wiki UK Limited (operating name Wikimedia UK)
Thank you for your letter of 4 March 2009 and enclosures. I am sorry for the delay in replying.
I am aware that you have written to Nick Palmer MP {regarding delays in responding} - a reply to that letter will be sent separately to Nick Palmer MP.
The definition of a charitable company for tax purposes is contained at Section 506(1) Income and Corporation Taxes Act 1988 which states " 'charitable company' means any body of persons established for charitable purposes only". However, the determination of charitable status is a matter of general law.
To be a charity in law it is not sufficient that a company's activities or intended activities are charitable. The memorandum and articles of association of the company must declare objects that are charitable in law and be otherwise in acceptable charitable form so that the company could only carry out charitable activities.
The objects of Wiki UK Ltd are stated at clause 3 of its memorandum of association:
"The charity's Object is to aid and encourage people to collect, develop and effectively disseminate knowledge and other educational, cultural and historic content in the public domain or under a license that allows everyone to freely use, distribute and modify content, by means including (but not limited to):
[9 ways are them listed - for example 'acting as a voice and representative for the community of UK residents and citizens who use and edit such repositories'] "
In your letters of 23 November 2008 and 4 March 2009 you state that the primary purpose of setting up the company is to support the 'Wikipedia' website. {We actually said " support the “Wikipedia” website and the other projects of the Wikimedia Foundation, in ways that are compatible with UK charity law"}
The stated objects are not charitable in law. The production of an encyclopaedia is not the charitable advancement of of education and has not been accepted as such in law. In Re Shaw [1957] 1 WLR 729 Mr Justice Harman said "If the object be the mere increase of knowledge it is not in itself a charitable object unless it is combined with teaching or education". Nor is the support the Wikipedia, the stated primary purpose of Wiki UK Ltd, a charitable purpose.
Wiki UK Ltd is not established for charitable purposes only as required by the legislation and so is not a charity for tax purposes. The charity tax examptions and reliefs (including Gift Aid tax relief) are not, therefore, available to Wiki UK Ltd.
To help us improve customer service, please quote our reference number and provide a daytime telephone number in any correspondence.
Yours sincerely,
Higher Officer, Technical
Has James sent a Phorm opt-out email for wikimedia.org.uk yet? I ask
because wm.de and wm.fr have just opted out too.
The canonical web address is now http://uk.wikimedia.org , but opting
out provides a nice public message. For publicity purposes, I'd
suggest the Board agree it should be opted out and James send the
actual message (since he's still registered contact).
- d.
I thought it only was for sites hosted outside the uk?
seddon
-----Original Message-----
From: David Gerard <dgerard(a)gmail.com>
Sent: 28 April 2009 14:56
To: wikimediauk-l(a)lists.wikimedia.org; jdforrester(a)gmail.com
Subject: [Wikimediauk-l] Phorm opt-out for wikimedia.org.uk?
Has James sent a Phorm opt-out email for wikimedia.org.uk yet? I ask
because wm.de and wm.fr have just opted out too.
The canonical web address is now http://uk.wikimedia.org , but opting
out provides a nice public message. For publicity purposes, I'd
suggest the Board agree it should be opted out and James send the
actual message (since he's still registered contact).
- d.
_______________________________________________
Wikimedia UK mailing list
wikimediauk-l(a)wikimedia.org
http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l
WMUK: http://uk.wikimedia.org
As David Cameron's such a fan, should we sent him a membership form! :)
----- Forwarded Message -----
From: "James Farrar" <james.farrar(a)gmail.com>
To: "English Wikipedia" <wikien-l(a)lists.wikimedia.org>
Sent: Sunday, 26 April, 2009 19:45:50 GMT +00:00 GMT Britain, Ireland, Portugal
Subject: [WikiEN-l] Politician praises Wikipedia
Well, in relative terms, anyway:
http://www.conservatives.com/News/Speeches/2009/04/The_age_of_austerity_spe…http://tinyurl.com/dxdujw
"Our government spends nearly £400 million a year on advertising to
reach sixty million people while Wikipedia, one of the largest
websites in the world, spends about one per cent of that to reach 280
million people."
Not sure if his figures are accurate, but it's intriguing.
_______________________________________________
WikiEN-l mailing list
WikiEN-l(a)lists.wikimedia.org
To unsubscribe from this mailing list, visit:
https://lists.wikimedia.org/mailman/listinfo/wikien-l
2009/4/27 Gordon Joly <gordon.joly(a)pobox.com>:
> At 14:50 +0100 27/4/09, David Gerard wrote:
>>2009/4/27 Thomas Dalton <thomas.dalton(a)gmail.com>:
>>
>>> Maybe, but does anyone read The Register other than for BOFH and case
>>> studies on bad journalism?
>>
>>
>>The hardware reviews are nice if a bit press-releasy ...
>>
>>- d.
>
>
> http://www.theregister.co.uk/2009/04/27/wikipedia_charity_not/
>
> Gordo
>
Ah, I was 2 minutes too late. I should refresh more often!
Pete / the wub
2009/4/27 Gordon Joly <gordon.joly(a)pobox.com>:
>>
>>
>>Do many (any?) people from the media read this list? It is public
>>knowledge now, but that doesn't mean it is likely to end up in the
>>media unless we take action to make that happen.
>
>
> I think the Register may have its talons in here...
Maybe, but does anyone read The Register other than for BOFH and case
studies on bad journalism?
Hi Steven,
Thanks for your note, I 'm doing now.
Here I also want you to write a review on our software,EASEUS Partition
Master 3.5 Home Edition which is ranked 1st on download.com. Also we have
Professional Edition and Server Edition.
Please tell me if you are interested, and I will provide you a full
versionf the software.
Waiting for your early reply.
Best regards
Sky
-------------------------------------------------------------------------
> Thanks to Wikimedia UK and the board (old and new) for a fascinating
> afternoon in Manchester yesterday - and for the opportunity to witter on
> about the BBC and open media. FWIW, as an outsider, and a veteran of
> many committees and groups, I saw enthusiasm and real professionalism
> from members and board (I also joined up!). Well done to all.
>
> I took some pictures, which are here:
> http://www.flickr.com/photos/bowbrick/sets/72157617359600152/
>
> Do me a favour and add notes and tags etc., especially names. Some pics
> didn't come out because I am an idiot - apologies if you're apparently
> excluded!
>
> Steve
>
> --
> Editor, BBC Radio 4 Blog http://www.bbc.co.uk/blogs/radio4
> 07768 257 570
>
>> -----Original Message-----
>> From: wikimediauk-l-bounces(a)lists.wikimedia.org
>> [mailto:wikimediauk-l-bounces@lists.wikimedia.org] On Behalf
>> Of James Farrar
>> Sent: 26 April 2009 18:17
>> To: wikimediauk-l(a)lists.wikimedia.org
>> Subject: [Wikimediauk-l] New Board elected
>>
>> (Posting this on the train home. The full details will no
>> doubt be provided by Secretary Turvey in a timely manner...)
>>
>> The following seven individuals have been elected by the AGM
>> of Wiki UK Limited (Wikimedia UK) to serve as the Board of
>> Directors for
>> 2009/2010:
>>
>> Zeyi He
>> Thomas Holden
>> Michael Peel
>> Joseph Seddon
>> Andrew Turvey
>> Steve Virgin
>> Paul Williams
>>
>> Both on behalf of my fellow Teller James Humphreys and for
>> myself, I would like to congratulate these seven, and
>> commiserate Thomas Dalton, who was unsuccessful. I would also
>> like to thank the membership - the turnout was over 80%,
>> which is a more than creditable performance.
>>
>>
>> James Farrar
>> Teller, Wikimedia UK
>>
>> _______________________________________________
>> Wikimedia UK mailing list
>> wikimediauk-l(a)wikimedia.org
>> http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l
>> WMUK: http://uk.wikimedia.org
>>
>
> http://www.bbc.co.uk/
> This e-mail (and any attachments) is confidential and may contain personal
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> Please note that the BBC monitors e-mails sent or received.
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>
> _______________________________________________
> Wikimedia UK mailing list
> wikimediauk-l(a)wikimedia.org
> http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l
> WMUK: http://uk.wikimedia.org
(Posting this on the train home. The full details will no doubt be
provided by Secretary Turvey in a timely manner...)
The following seven individuals have been elected by the AGM of Wiki
UK Limited (Wikimedia UK) to serve as the Board of Directors for
2009/2010:
Zeyi He
Thomas Holden
Michael Peel
Joseph Seddon
Andrew Turvey
Steve Virgin
Paul Williams
Both on behalf of my fellow Teller James Humphreys and for myself, I
would like to congratulate these seven, and commiserate Thomas Dalton,
who was unsuccessful. I would also like to thank the membership - the
turnout was over 80%, which is a more than creditable performance.
James Farrar
Teller, Wikimedia UK
I agree that we don't need to mention Wikipedia firstly in our
statement as Wikipedia's function is a debate in education area. Wiki
UK is a charitable company which focuses on Open knowledge movement to
benefit education and knowledge. Probably, one direction of our
movement is to help wikipedia but our primary purpose should to
encourage people to help build the open information system to open to
public freely.
If need, I can offer varying research results to support our primary
purpose is charitable.
best,
Zeyi
2009/4/25 <wikimediauk-l-request(a)lists.wikimedia.org>:
> Send Wikimediauk-l mailing list submissions to
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>
> Today's Topics:
>
> 1. Fwd: Charity application rejected (Andrew Turvey)
> 2. Re: Charity application rejected (Thomas Dalton)
> 3. Re: Law advice (Thomas Dalton)
> 4. Re: Law advice (James Farrar)
> 5. Re: Charity application rejected (Andrew Whitworth)
> 6. Re: Law advice (Virgin, Steve)
> 7. Re: Charity application rejected (andrewrturvey(a)googlemail.com)
> 8. Re: Charity application rejected (Thomas Dalton)
>
>
> ----------------------------------------------------------------------
>
> Message: 1
> Date: Sat, 25 Apr 2009 13:19:06 +0100 (BST)
> From: Andrew Turvey <andrewrturvey(a)googlemail.com>
> Subject: [Wikimediauk-l] Fwd: Charity application rejected
> To: "wikimediauk-l(a)lists.wikimedia.org"
> <wikimediauk-l(a)lists.wikimedia.org>
> Message-ID: <12893353.61240661946484.JavaMail.SYSTEM@ATSL_Laptop>
> Content-Type: text/plain; charset="utf-8"
>
> Looks like my original email to the list bounced - hope this fills in some of the gaps.
>
> Regards,
>
> ----- Forwarded Message -----
> From: "Andrew Turvey" <raturvey(a)yahoo.co.uk>
> To: "WMUK" <board(a)wikimedia.org.uk>, wikimediauk-l(a)lists.wikimedia.org
> Sent: Friday, 24 April, 2009 21:59:07 GMT +00:00 GMT Britain, Ireland, Portugal
> Subject: Charity application rejected
>
>
> Dear All,
>
> Yesterday we received a letter from the UK Tax Authorities rejecting our application for recognition as a charity. Citing a legal precedent, they stated that "the production of an encyclopaedia is not the charitable advancement of education" and therefore we were not established for exclusively charitable purposes. The ruling they gave stated that "If the object be the mere increase of knowledge it is not in itself a charitable object unless it is combined with teaching or education".
>
> The full letter from the HMRC is copied below with some explanatory notes added in { }
>
> Their objection goes to the heart of what we have been established to do. On the surface, it does not appear that any different wording in our constitution or correspondence would have given us a different outcome. Nonetheless, the legal issues may be arguable - our job is not just to produce content in isolation, but also to spread that knowledge and make it accessible to all. I should imagine this will come down to the finer points of law, and it is probably best to engage a lawyer at this stage when we appeal.
>
> If we had applied to the Charity Commission before HMRC the application would have been considered by different lawyers but the same law would apply. Therefore, it is likely that we would have come up against the same problem.
>
> I'm contacting the Foundation to ask them if they are aware of any lawyers familiar with UK law who could help us pro-bono on this.
>
> I'm also sending a note to our MP to thank him for his help in speeding this up: although it is disappointed to get this response, it is better to get it now that in 3 or 6 months' time.
>
> In the meantime, we should probably stop referring to ourselves as a "charity" or an "exempt charity". Before receiving this letter it was reasonable for us to do this as that was our honest view. Now we know there is some disagreement over this, I suggest we should describe ourselves as a "not-for-profit" instead. Whilst we can still get Gift Aid declarations (HMRC have previously confirmed this was ok) we should probably add a caveat on the form explaining that our charitable status is contested.
>
> Regards,
>
> Andrew Turvey
> Secretary, Wikimedia UK
>
> =========================
>
> Company Secretary
> Wikimedia UK
> 23 Cartwright Way
> Beeston
> Nottingham NG9 1RL
>
> Date: 17 April 2009
>
> Dear Mr Turvey,
>
> Wiki UK Limited (operating name Wikimedia UK)
>
> Thank you for your letter of 4 March 2009 and enclosures. I am sorry for the delay in replying.
>
> I am aware that you have written to Nick Palmer MP {regarding delays in responding} - a reply to that letter will be sent separately to Nick Palmer MP.
>
> The definition of a charitable company for tax purposes is contained at Section 506(1) Income and Corporation Taxes Act 1988 which states " 'charitable company' means any body of persons established for charitable purposes only". However, the determination of charitable status is a matter of general law.
>
> To be a charity in law it is not sufficient that a company's activities or intended activities are charitable. The memorandum and articles of association of the company must declare objects that are charitable in law and be otherwise in acceptable charitable form so that the company could only carry out charitable activities.
>
> The objects of Wiki UK Ltd are stated at clause 3 of its memorandum of association:
>
> "The charity's Object is to aid and encourage people to collect, develop and effectively disseminate knowledge and other educational, cultural and historic content in the public domain or under a license that allows everyone to freely use, distribute and modify content, by means including (but not limited to):
>
> [9 ways are them listed - for example 'acting as a voice and representative for the community of UK residents and citizens who use and edit such repositories'] "
>
> In your letters of 23 November 2008 and 4 March 2009 you state that the primary purpose of setting up the company is to support the 'Wikipedia' website. {We actually said " support the ?Wikipedia? website and the other projects of the Wikimedia Foundation, in ways that are compatible with UK charity law"}
>
>
> The stated objects are not charitable in law. The production of an encyclopaedia is not the charitable advancement of of education and has not been accepted as such in law. In Re Shaw [1957] 1 WLR 729 Mr Justice Harman said "If the object be the mere increase of knowledge it is not in itself a charitable object unless it is combined with teaching or education". Nor is the support the Wikipedia, the stated primary purpose of Wiki UK Ltd, a charitable purpose.
>
> Wiki UK Ltd is not established for charitable purposes only as required by the legislation and so is not a charity for tax purposes. The charity tax examptions and reliefs (including Gift Aid tax relief) are not, therefore, available to Wiki UK Ltd.
>
> To help us improve customer service, please quote our reference number and provide a daytime telephone number in any correspondence.
>
> Yours sincerely,
>
>
> Higher Officer, Technical
>
>