Payroll giving allows employees to give to charities tax effectively direct from their gross salary. But just 3% of those who could support charities in this way do so at present. As well as the 10% boost, the government is also removing the £1,200 upper limit. CAF research has shown that over 70% of donors giving close to the limit would give more once this threshold was removed. There is no minimum; most donors give at least £5 per month.
Benefits to the business
• Appreciated by employees who will increasingly expect it – a nationwide publicity campaign to encourage payroll giving is planned this summer.
• Supporting your staff is supporting your local community.
• Easy to set up and run. The whole process can be automated by email or intranet.
• No charge to the employer for setting up. Promotional costs are tax deductible against profits.
Register with a payroll giving agency approved by the Inland Revenue. Send the pre-tax deductions from your employee’s salary each pay day and the agency will distribute donations to the chosen charities.
The options for your staff
Depending on the agency you register with:
•Monthly Donations to Charity – donor selects cause(s).
•CharityCard Account – donations paid into an account for donors to give whenever they wish.
•Staff Charity Fund – individuals club together and set up a joint fund.
•Personal Charitable Trust – tax-free donations can now be used to fund a Charitable Trust, with donations endowed or invested to generate regular income.
Make payroll giving a success story
• A successful payroll giving scheme is about communicating and celebrating what your staff achieve.
• The best way to communicate is face to face. Recruit staff volunteers or invite a professional fundraiser to speak to staff.
• Consider choosing a charity to support as a group. The charity(ies) can provide information and promotional material.
• Organise a promotional day or week to encourage staff to join now.
• Make joining easy by providing plenty of information, joining forms and a contact for queries.
• For staff to donate at a touch of a button, set up intranet or email joining forms.
• Include information and a joining form in packs for new staff.
• Don’t forget to say thank you and celebrate the contribution everyone has made.
Corporate Citizenship Briefing, issue no: 51 – April, 2000