Payroll Giving - Charities

Payroll Giving offers many benefits to charities:

  • Donations made through Payroll Giving mean the receipt of regular, “cleared” funds enabling cash flow planning
  • Once signed up, employees remain loyal to their Payroll Giving and give for longer than by any other means, for example, through Gift Aid
  • Payroll Giving is free from the delays and complexity of Gift Aid meaning that funds are automatically received
  • Enhances donations by offering opportunities for employers to participate by either paying the administration charge and/or matching employees’ contributions
  • Independent of employee’s taxation status as deductions are made out of gross pay
  • Payroll Giving being so well established, charities can focus on promoting themselves rather than fundraising strategies as well

Payroll Giving is undoubtedly the most sustainable form of charitable giving – it should be the foundation for every charity’s income stream

Is there any cost to the charity?

Since the work involved in collecting and distributing Payroll Giving scheme funds is borne by Charitable Giving, there is no cost to the charity.

However, an administration charge to cover our cost of processing and distributing the monies to charity is agreed with employers as part of the Payroll Giving contract on either a percentage or fixed cost basis; in the latter case, the maximum charge is 25 pence per employee per month

Unless paid for otherwise, the administration charge is deducted from the employee’s Payroll Giving deduction before any monies are distributed to charity

However, employers can enhance their employees’ contributions by either:

  • Paying the administration charge (which qualifies as a tax-allowable expense)
  • Matching employees’ Payroll Giving deductions according to an agreed formula, e g, 100% 50%, 100% capped at £10 per donor per month (which can be charged against profits as a charitable donation

After processing the deductions from all employers, Charitable Giving distributes the funds to the relevant charitable organisations as quickly as possible

How does the Payroll Giving scheme work?

The Payroll Giving scheme operates by:

  • Employers signing-up with Charitable Giving to offer and promote the scheme to their employees
  • Participating employees electing how much they wish to give each payday and to which charitable organisations
  • Employers making regular Payroll Giving deductions from the gross pay of their participating employees and sending such funds to Charitable Giving each month
  • Charitable Giving processing the deductions from all employers

After processing the deductions from all employers, Charitable Giving distributes the funds to the relevant charitable organisations as quickly as possible

How will funds be sent to us?

As far as possible, we transmit funds electronically by credit transfer, e g, BACS. This is the most secure and quickest method as far as charities are concerned; it is the most cost effective and environmentally acceptable for Charitable Giving.

Only in exceptional circumstances will funds be sent by cheque

Will we be provided with the identity and contact details of our donors?

This will depend on the donor.

When completing our Donation Choice Form, donors have the choice of remaining anonymous in which case no details about the donor will be communicated to you.

On the other hand, donors have the choice of instructing us to provide their charities with their details which they may or may not want charities to pass on to other third parties

Can Charitable Giving help with our administration?

Yes

We offer monthly donation reports in either "pdf" or Microsoft Excel (*.xls) formats that are sent electronically as email attachments and for which we invoice separately

Depending on a donor’s preference, reports can include contact as well as donation details

Can we set up a Payroll Giving scheme for our employees?

Of course!

As an employer, any charity can set up a Payroll Giving scheme with us, for which we offer a preferential administration charge of 2% to help the charitable efforts of your employees. To do so, you have to sign a Payroll Giving Contract

The Payroll Giving Contract can be downloaded separately or as part of our Payroll Giving Pack that contains all the necessary forms, instructions on how to complete, and other useful information

When completed, the signed and dated Payroll Giving Contract should be returned by post to the following address:

  • Charitable Giving
    Union Mine Road
    Pitts Cleave
    Tavistock
    PL19 0PW

Please Contact Us if you have any questions or require assistance.

As a charity, how can we promote Payroll Giving?

Principally through corporate fundraising; you may also be able to obtain assistance from other agencies, for example, professional fundraising organisations (PFO's), information about which can be obtained at www.apgo.org.uk.

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