A recent report shows that people are increasingly choosing to participate in payroll giving, where an employee donates to a charity through their pay packets, before tax.
Figures for 2017/18, released by the Association of Payroll Giving Organisations (APGO) show that UK employees donated £133m through their salaries in that financial year. Employer matching brought this figure up to £141.5m, an overall increase of £3.5m on the previous year. (Figures drawn from the three biggest payroll giving organisations, the Charities Aid Foundation, the Charities Trust and Charitable Giving.)
More than 5,500 employers operate the scheme, and over a million employees donate this way each month, benefiting around 8,500 different good causes.
If your charity is interested in encouraging supporters to donate in this way, there is actually very little that you have to do! The Gov.uk website has information for employers wishing to set up the scheme through a payroll giving agency, and employees who wish to take part, as well as for charities.
For an organisation to take part, they must be a charity, be recognised by HMRC, and use the donation for ‘charitable purposes’ as defined by HMRC. That’s all. It guarantees a regular income, and means that the donor benefits as well as the charity, as they don’t pay tax on what is donated.