Employers should shout louder about their giving to attract new recruits, research finds

6 February 2023

Businesses should be more open and transparent about their charitable donations, according to 70% of individuals, new research from the Charities Aid Foundation (CAF) shows.

Almost half (46%) of employees do not know whether their employer donates a proportion of its profits to charitable causes while 35% believe they don’t donate at all.  

HR teams could potentially be missing out on new talent as nearly half (47%) of people say they’d be more inclined to work for a business if it donates to charitable causes. With the cost-of-living crisis taking its toll across the nation, 68% believe businesses have an obligation to support the local communities in which they operate.

With Payroll Giving Month taking place this February, CAF’s research reveals that two in five (41%) employees don’t even know if their employer offers the service.  A similar number (40%) believe their employer doesn’t offer payroll giving, while only 18% of people say its available at their workplace.

As the UK’s biggest payroll giving agency, CAF has granted more than £1.6billion in employee donations to over 40,000 charities through their payroll giving scheme Give As You Earn since it launched in 1987. But with many people still unaware of the service, this figure could be much higher.

Payroll giving is tax effective as charitable donations are taken from pay before income tax is deducted. For a charity to receive a £25 donation, it effectively ‘costs’ a base rate taxpayer £20 or a higher rate taxpayer £15. Charities receive a reliable and regular income, and reduced administration and fundraising costs. Many employers match their employees’ payroll giving, which can double the donation a charity receives, and it can be easily integrated into a benefits platform for simple sign-up.  Employers can also work with Professional Fundraising Organisations who are dedicated to driving employee engagement in payroll giving.

Mark Greer, Managing Director for Philanthropy Services, Charities Aid Foundation, said:

“Working for a business that has a social purpose matters to employees and jobseekers. How a company supports its communities, whether local or global, is increasingly seen as fundamental to attract and retain talent in a world where competition is high.

“However, corporate responsibility needs to be authentic and transparent. Embedding purpose by engaging employees and partnering with charities can help a business to have a positive impact on society and meet its strategic goals. Payroll Giving is an accessible and affordable way for employees to engage with their employer’s responsible values. By matching your employee’s donation, you can work together to have a positive impact on society.”