Payroll Giving

 

Did you know that one third of companies who offer Payroll Giving to their employees have attributed improved staff retention to the scheme?

About Payroll Giving

What is it?

Payroll Giving is a flexible scheme that enables donors to make charitable donations straight from their gross salary (before tax has been deducted). Therefore, for a basic rate taxpayer wanting to give a £10.00 donation, it will only cost £8.00, or just £6.00 for higher rate taxpayers. For example:

£10 Pledge
Cost to donor paying 20% tax=£8.00
Cost to donor paying 40% tax=£6.00

Note: Transitional Relief does not apply to Payroll Giving.

Furthermore, many employers are encouraging the scheme by matching their employees' donations.

Payroll Giving offers charities a unique way to combine fundraising with building relationships with their donors as well as with the corporate community.

For more information download our Payroll Giving factsheet.

How does it work?

An employee asks their payroll department to deduct regular charitable donations from gross pay before tax. The company then passes that money to their chosen Payroll Giving agency, who send off the donations to the nominated charities.

What are the benefits?

For charities:

  • Providing a reliable donation stream.
  • Donors are likely to continue giving for some time.
  • No administrative burden associated with processing donations.
  • Potential employer matching.

 

For the donor:

  • Costs less to give more.
  • Payroll Giving is easy to set up and to maintain

For the employer:

  • Corporate Social Responsibility / Corporate Community Investment profile.
  • Boosts employee morale & sense of team-building (my company was responsible for donating a total of £xx to charity this year) & therefore, can aid staff retention).
  • Aids recruitment (increasingly, graduate applicants ask about the social responsibility and ethical profile of businesses).
  • Payroll Giving can complement existing volunteering or charity adoption schemes, by offering employees a structured 'no hassle' giving system.
  • Donations to the charities are administered by a payroll giving agency.

Free Downloads

We have a number of free downloads available. Please see our downloads page for tips on promoting Payroll Giving, templates and more

Essential Forms:

      A sample donation form to be modified for use by your charity.

Payroll Giving Quality Mark

Launched in January 2006, the Payroll Giving Quality Mark is an annual programme that recognises and rewards organisations for making Payroll Giving available to their staff.

Providing employers with a certificate and logo for signing up to Payroll Giving and Bronze, Silver and Gold Awards in respect of each employer's employee participation rates, the Quality Mark aims to provide UK charities with sustainable income streams by increasing participation in Payroll Giving.

National Payroll Giving Excellence Awards

Organised by the Institute of Fundraising and the Payroll Giving Centre, these Awards are held annually at HM Treasury to celebrate the 'best of the best' in Payroll Giving. Winners of Gold, Silver or Bronze Quality Mark Awards can apply to enter any of the 8 award categories.

For further information, visit www.pgxawards.org