One third of companies who offer payroll giving to their employees have attributed perfected staff retention to the scheme.
What is it?
Payroll Giving is a supple scheme. The main function of it is to authorize givers for making benevolent donations straight from their big salary. Consequently, if a basic rate taxpayer wants to give a £10.00 donation, it will only cost £7.80 or just £6.00 for higher rate taxpayers. Let's take an example:
Cost to donor paying 22% tax=£7.80
Cost to donor paying 40% tax=£6.00
Besides, many employers are emboldening the scheme by matching their employees' donations.
Charities are tendered by payroll giving with an unusual way to unite raising of funds with building relationships with their donors as well as with the corporative community.
How does it work?
Payroll department deduct regular benevolent donations from big pay before tax. And employees ask them to do this. The next what company does is to pass money to their chosen Payroll Giving agency. Then the last sends off the donations to the designated charities.
What are the profits?
1. Providing a secure donation stream.
2. Givers may continue giving for some time if they want to.
3. There is no administrative burden that is associated with processing donations.
4. Potential employer matching.
For the donor:
1. For giving more – costs less.
2. Payroll Giving is an easy way for setting up and keeping up.
For the employer:
1. Corporate Social Responsibility / Corporate Community Investment profile.
2. Raise employee morale and sense of team-building.
3. Aids recruitment (increasingly, graduate applicants ask about the social responsibility and ethical profile of businesses).
4. Payroll Giving can complement existing volunteering or charity adoption schemes, by proffering employees a structured 'no obstacle' giving system.
5. A payroll giving agency administers donations to the charities.
Payroll giving quality mark
The Payroll Giving Quality Mark is an annual programme that recognizes and rewards organizations 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.