Payroll Giving is an easy and tax efficient way for employees to donate to charity.
BGC has an award winning approach we can use to attract employees to donate and is an excellent way for a company to support its employees and its community engagement program.
How does Payroll Giving work?
Donations are deducted straight from an employees gross salary (before tax is deducted) giving immediate tax relief, so each £1 donated will only cost the employee 80p (or 60p if a higher rate tax payer).
|Employee pledges||Cost to standard rate taxpayer||Cost to higher rate taxpayer||Cost to super rate taxpayer|
|£5.00 per month||£4.00||£3.00||£2.00|
|£8.00 per month||£6.40||£4.80||£4.00|
|£10.00 per month||£8.00||£6.00||£5.00|
|£15.00 per month||£12.00||£9.00||£7.50|
It’s easy to set up for the employer and an employee needs to fill out a simple form choosing the amount they want to donate and to who.
If an employer does not have a payroll giving scheme in place they need to contact a payroll giving agency such as www.charitiestrust.org who will help with the forms and arrange collection of the tax and distribution of the donations to the selected charities.
What are the Benefits?
Promoting Payroll giving is best done as an integral part of their community engagement program. It shows a business is committed to supporting the community and supports the charities that are close to employee’s hearts.
Other business benefits are:
Many companies cash match employee donations, especially at the start of their payroll giving promotion.
Payroll Giving is an easy, tax-effective way to give to charity – so it costs employees less to give more. The system is easy to opt in and out of, giving donors full control over their giving.
If a company has a cash matching scheme, employees can see extra funds going to the charities they care about, at no extra cost to them.
Payroll Giving is a valuable long term source of revenue, providing regular income to helps us to plan our expenditure and budget accordingly.
If a company engages in our award winning approach it can raise awareness of people with a learning disability and can promote further support for our projects.
The Quality Mark Award
The Payroll Giving Quality Mark recognizes and rewards organisations of all sizes for making Payroll Giving available to their staff. The Quality Mark comprises Bronze, Silver and Gold awards dependant on staff participation levels and employer support.
Once you set up a Payroll Giving scheme, you will receive a certificate as well as a logo for use on your letter heads, website and other company literature demonstrating internally and externally that you are committed to the good causes that your employees care about.
Bronze Award – Awarded to employers that achieve 1% employee participation.
Silver Award – Awarded to employers that achieve 5% employee participation
Gold Award – Awarded to employers that achieve 10% employee participation and who either pay the administration charge, match donations, or demonstrate that they have carried out an active promotion of Payroll Giving during the past 12 months
Winning an award would be a great news story for your organisation.
If you would like further information or help and advice on setting up and promoting a payroll giving scheme for maximum effect, please contact:
Tel: 01234 352899
Beds Garden Carers
1 Brereton Road, Bedford, Bedfordshire, MK40 1HU