Payroll giving and the benefits for employers
Payroll giving is a low-cost scheme with minimal administrative requirements. It's an ideal way for organisations with smaller budgets to provide vital support for charities such as the Rainforest Foundation.
Research shows that payroll giving offers real business benefits including:
- Improving your social responsibility profile
- Enhancing community involvement programmes
- Improving staff recruitment and retention
If you have any questions about Payroll Giving, please see our frequently asked questions here.
The benefits for us
Regular payroll giving allows us to plan for the future. It enables us to work on long-term projects without the worry associated with many other less reliable sources of income.
Set up payroll giving in your organisation
To set up a payroll giving scheme within your organisation, you must, by law, sign up with a Payroll Giving Agency (PGA) which will process your employees' donations and distribute the money to their chosen charities.
A list of government approved agencies can be found on HM Revenue and Customs (HMRC) website: www.hmrc.gov.uk
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The agency will set you up with everything you need so your staff can start giving. They will provide forms and talk you through each process.
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The employee deductions are made before tax, but after NI contributions. This enables the employee to get tax relief on their donations.
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The Payroll Giving agency will then handle all the administration required for Payroll Giving and distribute the donations to the employee's chosen charity.
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By matching what your employees give delivers a strong message of corporate social responsibility. It will also help increase staff motivation and promote a positive message that you care.
Promoting the scheme to your employees
Professional Fundraising Organisations (PFOs) are available to help you promote the scheme to your employees. They will present a number of charities to your employees free of charge visit www.workplacegiving.co.uk/employers for more information.
For more information on payroll giving visit www.payrollgivingcentre.org.uk/
