February sees the launch of the first National Payroll Giving Week, running from the 8th-14th of the month. Themed around Valentines and why we love Payroll Giving, the aim of the week is to raise awareness within the sector and beyond, about the benefits of donating through this easy, tax-efficient method.
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 this week is just the first step in growing the value and awareness of this area of giving and starting conversations with both charities and corporate partners about how to work together.
Payroll Giving has arguably been a less promoted form of individual giving across the sector, but this is now definitely changing. Schemes are not only run here in the UK, but very successfully in Australia, USA, and several other countries. The method of donating is simple: 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).
Over 1 million people donate to charities through their pay and together they have raised over £2 billion for good causes.
Payroll Giving Week has been developed based on an idea from 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 was 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 offered a reliable source of income. The APGO (Association of Payroll Giving Organisations) reported in the autumn that payroll giving donations during the first lockdown rose by nearly 10% compared to the same period the year before. Average gifts increased by almost 15%, plus an additional 9% uplift in corporate matched giving.
In a time where exploring 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 both your company and the charities you support.
“Payroll giving offers a vital source of income to Barnardo’s. Our services are facing even greater demand against a backdrop of a significant reduction in income. These same pressures apply for numerous charities which is why we are supporting Payroll Giving Week. This week will help raise the profile of this tax-efficient method of giving, vital to many charities and causes during these unprecedented times.”Terry Stokes, Head of Payroll Giving, Barnardo’s
“Payroll Giving provides Together For Animals with a vital regular source of income, allowing us to provide lifesaving care for animals desperately in need. As a small charity we see Payroll Giving as our key source of income. We’re supporting Payroll Giving Week, as it supports us – and so many charities – each year.”Caroline Gaskin, Development Manager, Together for Animals
“Payroll Giving remains a resilient and vital source of fundraising for the UK charity sector at this most difficult of times. We fully support Payroll Giving Week, an opportunity to thank companies and their employees for their continued generosity and to all the recipient charities for their determination and resolution to carry out their much needed work.”APGO (Association of Payroll Giving Organisations)
GivingForce Makes Payroll Giving Quick and Simple
Payroll Giving doesn’t have to be difficult or complicated. GivingForce lets your employees see a complete history of who they have given to and manage their donations themselves. Employees can quickly set up one-time or regular donations to charities of their choice. There are options for giving pennies, salary sacrifice and other types of donations. Our payroll giving module has interfaces for your payroll and payment systems or providers.
You can find out more about our Payroll Giving services here.
The GivingForce Team