What is Payroll Giving?
The Payroll Giving Scheme was set up by the Government 34 years ago and allows staff to donate to any charity or good cause from their gross pay. £132,000,000 was paid to charities and good causes in the UK between 2019 and 2020. (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/963720/Table_8_-_Payroll_Giving.pdf)
Why do Charities love this form of regular and unrestricted income?
Firstly, and most importantly, charities love regular giving. It helps them to budget and to ensure continuity of their services. They cannot say to a needy child or adult, “well we can help you this week, but not so sure about next week!” Payroll giving donors give for an average of 8.5 years and this is because it is so easy to do through their payroll. Payroll givers are also less likely to cancel when budgeting, as the amounts deducted do not show on their bank statements.
Secondly, payroll giving income is unrestricted. This means that it does not have to be set aside for a particular appeal and can be used as the charity sees fit, or as it is needed most at the time.
Sometimes, companies see that a large portion of their staff are inclined to support a particular charity and may take that relationship further, entering a “Charity of the Year” type partnership.
Even the very largest charities do not have the resources to visit every workplace and ask staff to give to their charity so they can outsource this process to Professional Fundraising Organisations (PFO’s) such as StC to do this for them. Although the PFO would typically be representing around 200 charities, this is still a good way for charities to be promoted to staff all over the country in their workplaces.
Why do Companies like Payroll Giving?
Payroll Giving is quick and easy to set up and administer and is a great way for SMEs to demonstrate commitment to causes that their employees care about. It can also aid retention and recruitment of staff, nurturing and contributing to a healthy CSR program, and finally, enabling them to generate a sustainable income for charities.
With 75% of millennial’s willing to take a pay cut to work for a responsible business and 83% becoming more loyal when they can contribute towards social issues, it makes business sense!
The scheme incurs no cost to the company and is a great way to engage their employees in charitable activity.
They can also achieve a Payroll Giving Quality Mark, which is a government-supported accreditation which recognises and rewards organisations of all sizes for making Payroll Giving available to their employees.
There are six levels of Quality Mark – Standard, Bronze, Silver, Gold, Platinum and Diamond. Each level recognises a certain minimum employee participation rate. Holders of a Quality Mark will receive a certificate and a logo to use on company materials.
And they can win an award!
The Government endorsed awards showcase Payroll Giving excellence within businesses across the UK – celebrating achievement and praising creativity and dedication to tax-free giving.
Applications are welcomed from organisations and individuals who have inspired engagement in Payroll Giving over the previous 12 months.
The awards are free to enter, and nominations can come from any size of organisation, while subcategories ensure relative comparison of campaigns. Individual submissions are accepted from anyone working within the sector.
We can help you every step of the way. We can set up the scheme and promote it to staff and they do not charge a penny for this service.
Why is Payroll Giving a staff benefit?
Well for those staff who do support good causes, and according to a recent study*, 64% of the UK population do, then why on earth would you give from your net pay when you can do it from your gross pay and get the Government to cough up the rest!
*https://www.nptuk.org/philanthropic-resources/uk-charitable-giving-statistics/
If you want to know more, please contact us at corporates@test.stcpayrollgiving.co.uk