Payroll Giving - your questions answered
What is Payroll Giving?
It is a simple, tax effective way for donors to give to charity directly from their pay.
Why is it such a good method of fundraising?
Payroll Giving offers charities a unique way to combine fundraising with building relationships with their donors as well as with the corporate community. For more information see Payroll Giving - unique benefits.
How does it work?
An employee simply asks their payroll department to deduct regular charitable donations from gross pay before tax, but after National Insurance contributions. The company then passes that money to a Payroll Giving Agency, who send off the donations to the appropriate charities.
How do I reclaim the tax on a Payroll Giving donation?
You don't - the donation goes straight from the donor's pay before tax is deducted, and into your bank account.
A donor has pledged to give £10 per month from their gross salary to our cause, why don't we receive exactly £10?
Payroll Giving agencies generally deduct a small administration fee for each donation, unless the employer pays this on the donor's behalf. This charge is normally no more than 4 per cent of the donation or 25p per payroll deduction, which ever is greater. So a £10 Payroll Giving donation from a contributor would arrive in your account as £9.60, £10 minus £0.40 administration costs.
How do we get more donors to give through Payroll Giving?
Your Payroll Giving Agency or Payroll Giving Professional Fundraising Organisation will be able to help you promote Payroll Giving in the most effective way possible. More information is provided in Promotion Tips.
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