The aim of the week is to raise awareness within the sector, and wider, about the benefits of donating through this easy, tax-efficient method. Response to the first Payroll Giving week in 2021 was very positive and hundreds of charities of all sizes and causes took part. This year we are hoping to build on this and get even more charities and employers on board.
Information from how to introduce a payroll giving scheme, to how to promote one can be found on www.payrollgivingweek.co.uk. Charities can also download promotional assets: a poster, email signature, and all imagery that can be used as a part of the week’s activities.
This could be a great time to start discussing Payroll Giving campaigns with partners, as well as promoting it internally within your own charity. We ask charities to use social media to talk about Payroll Giving during the week and use hashtags #lovepayrollgiving and #payrollgivingweek. Why not thank your corporate partners that have Payroll Giving schemes in place on social media and talk about the scheme in general.
With support from partners such as the Chartered Institute of Fundraising, Chartered Institute of Payroll Professionals, Professional Fundraising Organisations, the Association of Payroll Giving Organisations, Payroll Giving Agencies, and charities across the sector both big and small, it is hoped that the week helps to grow the value and awareness of this area of giving, and to start conversations with both charities and corporate partners about how to work together.
Payroll Giving is a simple method of donating. Payroll Giving donations are taken from pay before tax. A donation of £5 a month would actually cost an employee £4 from their take-home pay (if they pay 20% tax) or £3 (if they pay 40% tax). Many employers also match donations which make these go even further. It is also good to remember that you can also make one-off gifts via the scheme.
Over 1 million people donate to charities through their pay and together they have raised over £2 billion for good causes.
For the charities, Payroll Giving provides an unrestricted source of regular income, and when you receive donations through Payroll Giving there is no need to apply for Gift Aid, saving you money and time. As opposed to Gift Aid where donations can only be increased by 25% regardless of the donor’s tax bracket, Payroll Giving allows charities to receive the full tax relief. This is a fantastic benefit for higher rate tax-payers. A 45% tax payer can see a donation’s value increase by 88% meaning £100 out of the donor’s pocket becomes £188 going to the charity. A key benefit when comparing to Gift Aid is that there the tax relief doesn’t have to be claimed at a later date but instead is available at point of donation. Average value is strong as well, notably for those higher-value donors, whilst attrition is low with payroll donors likely to continue giving, on average, for up to 8 years.
Payroll Giving Week was developed by the Payroll Giving Forum – a collective group of charities who run successful Payroll Giving schemes. As a result of Covid-19 and the fundraising landscape since the start of the pandemic the Forum were keen to promote the strength of Payroll Giving, as well as thank existing donors and corporates who support their causes in this way.
During an extremely challenging time where fundraising teams have seen income levels drop rapidly, Payroll Giving has continued to provide a reliable source of income.
In a time where exploring all avenues of fundraising is at the top of many agendas, now is a great time to look at the possibilities introducing Payroll Giving or growing an existing Payroll Giving scheme could hold for you.
To contact the committee organising Payroll Giving Week and to find out more about the campaign and how you can join in, please email:
Caroline Gaskin, Together for Animals
caroline@togetherforanimals.org.uk
Terry Stokes, Barnardo’s
terry.stokes@barnardos.org.uk
Mervi Slade, CRUK
mervi.slade@cancer.org.uk