Payroll Giving : A Giving Revolution?Forbes recently published an article entitled ‘How Low Earners, Not The Wealthy, Could Start A Giving Revolution.’ An interesting read into why higher earners are not giving enough to charity and some ideas to revolutionise giving amongst these individuals. We’d love to see more high earners giving to charity through Payroll Giving as the tax benefits can have such a huge impact.
Donations through Payroll Giving are tax free and those charities chosen by additional tax-rate payers receive a huge 81% on top of the donation. So giving £10 a month via pay means the charity will receive £18.18. This nearly doubling of the money going to the charity, simply by giving through Payroll Giving has a huge impact, and the more high rate tax payers do this, the more money charities can make at no extra cost to donor or charity. This is particularly beneficial to smaller charities, who rely on Payroll Giving for a large part of their income.
Caroline Yates, Trustee of Together for Animals says, ‘Together for Animals Payroll Giving provides a vital source of income, allowing us to provide lifesaving care to animals desperately in need. Payroll Giving provides us with a sustainable income which is crucial for a small charity.’
The article also discusses Alexandre Marr’s philanthropic venture, the Epic Foundation, created to make it easier for discerning philanthropists to give money to charity. There have already been some really innovative ways Epic has got employees giving, such as ‘the French luxury group Dior, where employees could opt to donate the small change in their monthly paychecks to Epic. “After one year, one-fourth of the organisation was giving away money.”‘ When employers introduce schemes like this and Payroll Giving, donating to charity becomes the norm and the whole organisation benefits.
Gary Grant, Managing Director of The Entertainer says, ‘We encourage our staff to be generous and offer a Payroll Giving scheme to make it really easy. It’s a really easy tax-efficient way of giving.’
The fundraising landscape is definitely changing, but with change comes innovation. The easier, more socially normal giving to charity becomes, the more money will be generated for charities who need the funds.
You can join the revolution and get signed up to Payroll Giving. Find out more here.