Background:
Out of the UK’s 22 million PAYE earners, about 700,000 people give direct from their pay packets. In 2007/08 donations were £109 million, plus £13 million employer top-up (routinely, employers pay the scheme admin. costs). That’s just from 3.18% of the working population.
In the USA, where charity depends much more on communities rather than the state, the rate is 35%. If we could match that percentage in the UK we could raise over £1.3 billion per year for charitable organisations!
How it works:
Staff authorise the employer to make pre tax deductions (it’s part of standard payroll software) which go to a payroll giving agency in one monthly, consolidated payment. The payroll giving agency (we are one of 13 approved by HM Revenue & Customs) makes a small admin charge, up to 4% or 25p per transaction. From this point the money can be distributed to whichever charity the employee has chosen.
The Lincolnshire Community Foundation:
There are some real benefits of choosing to donate the money straight to the Foundation.
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Local giving to local causes – The Foundation supports charities and voluntary groups throughout Lincolnshire from the Humber to the Wash. Groups that benefit from the grant making work we do cover many important issues including sport, urban regeneration, the environment, and health, so whatever your interests there is bound to be a local cause to fit!
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Permanent Endowment – The foundation invests much of the money donated and is able to cover grant making and operational costs from the interest generated. This means that for years to come there will be funds available to help support the whole region.
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Grassroots Scheme – Through the government’s Grassroots scheme we are able to double the value of every donation received.
The sums:
Let’s say an employee on basic rate tax decided to donate £10 per month to charity.
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Because the deduction is made before tax, they will have just £8 less in their pay packet.
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The payroll giving agency would take the 4% admin fee to cover expenses, resulting in a £9.60 donation.
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If the employee had chosen the Lincolnshire Community Foundation as the charity to receive that donation, the money can then be doubled to £19.20 using the Grassroots scheme.
So we can take your £8 to almost £20 just by filling in one very short and simple form!
Employers:
The employer must keep records including the contract with the payroll giving agency, donor authorisation form and lists of deductions made.
The employer can qualify for awards too, depending on what percentage of their organisation donates: a bronze (1%), silver (5%) or gold (10%) kite mark.
It’s a really easy scheme to promote to your employees, as you can see from above the figures speak for themselves! You can include information in staff welcome packs to encourage new employees to take part, a flyer included with payslips and promotion on the company intranet are just a few places to start. We are more than happy to come and speak to staff to explain more about the scheme and how contributions can really benefit local communities.
Employees:
If you are interested in payroll giving your employer does need to sign a contract to work with the payroll giving agency. There really is very little work involved in setting the scheme up so it shouldn’t be too hard to convince them! We can provide you with all the information your employer will need, and we will always make time to speak to your employer about the scheme.
Examples:
1. Taylor Wessing (law) raise £50,000 a year with 30% of 700 staff contributing an average £40 per month.
2. Pfizer UK (pharmaceuticals) raise £270,000 a year with 10% of 6,500 staff donating £35 per month.
What to do next:
Contact us! Call 01529 307749 to speak to our Director, Gordon Hunter, or you can email him at gordonhunter@email.com. | 
