Tax Effective Giving from The Institute of Fundraising

Institute of Fundraising - Tax effective giving with Payroll Giving

Tax Effective Giving from The Institute of Fundraising - Payroll Giving



	1 Promote the Payroll Giving scheme internally. Having your own scheme provides your charity with real life experience that enables you to approach employers with confidence. 2 Get the Payroll Giving Quality Mark for your scheme and demonstrate the benefits to other employers. 3 Promote the scheme actively to employers through a range of communication methods. 4 Engage a Professional Fundraising Organisation (PFO) to help you promote Payroll Giving. 5 Join, or start your own Payroll Giving Consortium, to promote your charity to employers. 6 Update employees on the work you are doing and thank them for their contributions. 7 Include Payroll Giving information in your regular mailings to donors. 8 Advise employers of the ways in which they can promote a successful Payroll Giving scheme. 9 Tell but don't sell - Payroll Giving is a positive scheme that sells itself when explained in the right way, but employees are unlikely to respond favourably to an idea that is forced upon them. 10 Make use of the Payroll Giving workshops run by the Institute of Fundraising



	Further information on Payroll Giving is available from the HMRC website: www.payrollgiving centre.org.uk



	The Codes of Fundraising Practice are regularly revised and updated. The latest versions of the Codes are available at www.institute-of- fundraising.org.uk.



	Did you know that one third of companies who offer Payroll Giving to their employees have attributed improved staff retention to the scheme?


	• What is it? • How does it work? • FREE downloads • Did You Know...? • Payroll Giving Quality Mark


	Payroll Giving is a flexible scheme that enables donors to make charitable donations straight from their gross salary (before tax has been deducted). Therefore, for a basic rate taxpayer wanting to give a £10.00 donation, it will only cost £8.00, or just £6.00 for higher rate taxpayers. For example: £10 Pledge Cost to donor paying 20% tax=£8.00 Cost to donor paying 40% tax=£6.00 Note: Transitional Relief *does not* apply to Payroll Giving. Furthermore, many employers are encouraging the scheme by matching their employees' donations. 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 download our Payroll Giving "Did you Know ?" sheet.


	An employee asks their payroll department to deduct regular charitable donations from gross pay before tax. The company then passes that money to their chosen Payroll Giving agency, who send off the donations to the nominated charities. What are the benefits? For charities: • Providing a reliable donation stream. • Donors are likely to continue giving for some time. • No administrative burden associated with processing donations. • Potential employer matching. For the donor: • Costs less to give more. • Payroll Giving is easy to set up and to maintain For the employer: • Corporate Social Responsibility / Corporate Community Investment profile. • Boosts employee morale & sense of team-building (my company was responsible for donating a total of £xx to charity this year) & therefore, can aid staff retention). • Aids recruitment (increasingly, graduate applicants ask about the social responsibility and ethical profile of businesses). • Payroll Giving can complement existing volunteering or charity adoption schemes, by offering employees a structured 'no hassle' giving system. • Donations to the charities are administered by a payroll giving agency


	We have a number of free downloads available: Promoting Payroll Giving 10 top tips for promoting Payroll Giving Template Articles Promote Payroll Giving to donors and potential supporters by including them in your next newsletter. Template Article 1: A promotional article about Payroll Giving. Template Article 2: Highlighting the business benefits of Payroll Giving. Template Press Releases Promote your Payroll Giving success by tailor these releases to your charity and sending the relevant version out to your local press. Press Release Template 1 Press Release Template 2 Essential Forms A sample donation form to be modified for use by your charity.


	Prepare your organisation for the change in basic rate tax and how it will affect Payroll Gifts after April 2008. Download "How will the change in basic rate tax affect Payroll Giving ?" sheet.


	Launched in January 2006, the Payroll Giving Quality Mark is an annual programme that recognises and rewards organisations for making Payroll Giving available to their staff. Providing employers with a certificate and logo for signing up to Payroll Giving and Bronze, Silver and Gold Awards in respect of each employer's employee participation rates, the Quality Mark aims to provide UK charities with sustainable income streams by increasing participation in Payroll Giving.


	Institute of Fundraising Main Site \| Get in Touch The Institute of Fundraising is a Registered Charity no. 1079573 and SC038971 in Scotland www.tax-effective-giving.org.uk/payroll.html