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Payroll Giving

Although it is promoted by companies, it is employees who can take up advantage of Payroll Giving. Employees can give to any UK charity straight from their gross salary (before tax is deducted), and receive immediate tax relief of up to £4 for every £10 donated.

Payroll Giving donations are processed by Payroll Giving Agencies, which have special permission from HMRC to process donations made through the payroll.

A form of Committed Giving, the beauty of Payroll Giving is that it provides charities with regular, reliable donations, allowing them to plan ahead and budget for the future. Once a donor has signed up, they often support the charity for several years to come, and may go on to offer support in other ways.

From an employee’s perspective, Payroll Giving is an easy, tax-effective way to give, and it costs them less to give more. For employers, it is a great way to demonstrate commitment to the causes their employees care about. It can also aid retention and recruitment of staff, and enable them to generate a sustainable income stream to charities.

January 2006 saw the launch of The Payroll Giving Quality Mark, which recognises and rewards businesses and charities for making Payroll Giving available to their staff. The Quality Mark comprises a certificate and logo, as well as Bronze, Silver and Gold Awards and is an extra incentive to persuade employers to set up Payroll Giving and to continue promoting it to their staff.

To find out more contact the payroll giving centre on 0845 602 6786 or visit

Source: The Institute of Fundraising, Good Fundraising Guide

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