Charities Could Gain £175m From Payroll Giving

  • Research from Charities Aid Foundation (CAF) shows that charities could gain £175 million extra per year through payroll giving.

     CoinsPayroll giving is where people are able to give to charity from their salary before tax is deducted; there are currently around 735,000 payroll donors in the UK who gave a combined £118million to charity in 2011/12, but this is the equivalent of only 1 in 34 employees donating through payroll giving.

    This is likely to be because only 8,500 of the UK's 4.8 million employers offer their employees the opportunity to sign up to the scheme,

    CAF figures found in payroll giving research shows that 31% of respondents said they would be 'likely' to give to charity in this manner given the opportunity, and a further 8% classed themselves as 'very likely' to sign up.

    The average amount that those surveyed said they could see themselved donating was £7.13 per month, and if the 'very likely' 8% signed up and donated this amount, on a national scale it could represent more than 2 million workers donating £177,402,528 a year to charity.

    See CAF's full paper on payroll giving.

    Jeremy Bliss, Head of Corporate Clients at the Charities Aid Foundation, said:

    Far too few people have the chance to give regularly to charities and use tax relief on giving to make their donations go further.

    We need the Government and companies to help us make it easier to offer payroll giving and promote this great way to donate so millions of people can get on with giving.

    In these tough times for charities it’s vital that we take simple steps to make it convenient for people to give.

    Former Home Secretary David Blunkett, chair of the Growing Giving Parliamentary Inquiry, said:

    It's worrying that only a third of employees think that their employer make it easy for them to donate time or money to charity in their workplace.

    We need to look closely at how businesses and workers can join together in partnership to support good causes, and we'll be looking closely at what action can be taken to grow giving at work.

     Image source: http://www.sxc.hu/photo/1222895


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