BackgroundOut of the UK’s 22 million PAYE earners, circa 700,000 people give direct from their pay packets: 2007/08 donations were £109 million, plus £13 million employer top-up (routinely, employers pay the scheme admin. costs at, say, 4%; some match employee contributions).
So, just 3.18% of the working population give direct from payroll. In the USA, where charity depends much more on communities rather than the state, the rate is 35%!
Deductions from Salary
Staff authorise the employer to make pre tax deductions (it’s part of standard payroll software) which go to a payroll giving agency in one consolidated, monthly payment.
At basic rate, a £10 deduction costs the employee £8.
Pennywise
The most painless option is to donate the pennies, averaging £6 per employee per year, traditionally topped up or matched by the employer.
Payment to Charity:
The payroll giving agency* (approved by HM Customs & Revenue) makes a small charge, up to 4% or 25p per transaction. So, a £10 monthly deduction might work out at £9.75.
The most painless option is to donate the pennies, averaging £6 per employee per year, traditionally topped up or matched by the employer.
Payment to Charity:
The payroll giving agency* (approved by HM Customs & Revenue) makes a small charge, up to 4% or 25p per transaction. So, a £10 monthly deduction might work out at £9.75.
Records
The employer must keep records: their contract with the payroll giving agency, donor authorisation form, lists of deductions made.
Awards:
The employer can qualify for a bronze (1% of staff signed up), silver (5%) or gold (10%) kite mark.
The employer must keep records: their contract with the payroll giving agency, donor authorisation form, lists of deductions made.
Awards:
The employer can qualify for a bronze (1% of staff signed up), silver (5%) or gold (10%) kite mark.
Promotion
could include details in staff induction packs, thank you letters to new donors, posters and leaflets with case studies, donor newsletters and face-to-face presentations; communication by letter, email and inter/intra net.
could include details in staff induction packs, thank you letters to new donors, posters and leaflets with case studies, donor newsletters and face-to-face presentations; communication by letter, email and inter/intra net.
Examples
- Taylor Wessing (law) raise £50,000 pa with 30% of 700 staff contributing on average £40 per month.
- Pfizer UK (pharmaceuticals) raise £270,000 pa with 10% of 6,500 staff donating @ £35 per month.
The Lincolnshire Community Foundation (charity number 1092328) is a payroll giving agency; refer to www.hmrc.gov.uk. We help employees give to local causes, direct from salary. They simply nominate a recipient then authorise the payroll department to transfer deductions via the approved agency.
Who to?
The Foundation will process gifts to any registered charity in the UK, but we do offer two unique options:
The Foundation will process gifts to any registered charity in the UK, but we do offer two unique options:
- Local Giving to the Grassroots Grants programme opting for one of four themes all restricted to Lincolnshire projects.
- Until April 2011 we will double all donations.