What is Payroll Giving?
Payroll Giving (sometimes known as Give as You Earn) is a simple, flexible, and tax-effective approach to charitable giving that empowers your employees to make regular donations to St Luke’s effortlessly. This method involves a seamless, direct deduction from their wages, providing a hassle-free way for your staff to support St Luke’s while enjoying the added benefit of tax relief on their generous contributions.
How can I do this?
Payroll Giving is super easy to set up. Ask your payroll department or Benefits / CSR Team directly for how to get started. They will ask you to complete a form with the information about the donations you wish to make and giving your consent for the process to happen.
Many companies will have an established scheme already, set up in partnership with a Payroll Giving Agency. You can find a list of all approved agencies on the Gov.uk website. If not, setting one up is quick and easy and can form an important part of your Corporate Social Responsibility.
What is a Payroll Giving Agency?
Payroll Giving Agencies facilitate the secure transition of funds from your gross wages to your nominated charity’s bank account. Payroll Giving Agencies are themselves charities and they are authorised by HMRC to perform this function.
Your company needs to have a contract with a Payroll Giving Agency to allow donations to be deducted from your gross pay. There are no set-up costs for employers.
Payroll Giving Agencies can charge a processing fee of up to 5% of the donation amount. However, some agencies don’t charge and some charge a transaction fee per employee. You may choose to cover this fee for your employees otherwise the Agency will deduct it from donations. You can find a list of all approved agencies on the Gov.UK website. St Luke's can recommend Charities Trust and Charitable Giving.
Benefits to your business
Heightened Brand Image: Elevate your brand through Payroll Giving, presenting your business as compassionate and supportive. Employee contributions not only build a positive public perception but also demonstrate a commitment to social responsibility.
Employee Engagement: Offer your staff a straightforward and tax-effective means to donate to their chosen charity, fostering a sense of personal investment in charitable causes.
Steady Financial Income: Ensure a stable financial foundation for St Luke's with regular contributions from your employees through Payroll Giving.
Employee Morale and Recruitment: Boost staff morale, contributing to improved retention and recruitment outcomes. Payroll Giving fosters a sense of community and shared values among employees.
Streamlined Charitable Giving: Enhance your business's charitable giving and social responsibility with minimal effort and cost. Measure the impact of your company's contributions and support towards charitable causes.
Ensure your company is registered with an approved Payroll Giving Agency recognized by HMRC. For a list of approved agencies, visit HMRC's official page.
Utilise the tools on our website to effectively communicate and promote the scheme to your employees.
Your payroll team will take the donation from your employees’ gross salary each payday and send it to your chosen Payroll giving agency. This will then be forwarded straight to St Luke’s as a monthly or one off donation.
Other ways you can support
Matched funding is where companies offer to match any money raised by an employee taking part in a fundraising event. It can be a great way of motivating a team, as well as demonstrating your commitment to your corporate social responsibility programme.
You can use matched funding to support your staff’s generosity in a variety of ways:
• A payment of the scheme’s administration costs.
• 100% match, to equal each employee’s gift pound for pound. This can be capped with an annual limit.
• 200% match, you could even consider paying £2 for every £1 donated.
Do you want to learn more about Payroll Giving? Speak to a member of our dedicated Corporate Fundraising team by email [email protected] or call 0114 235 7554.