1. Lead by example
When business leaders give through their payroll, they can extend their influence beyond the value of their donations. It is a powerful step you can take to give back yourself, and if you choose to share your giving journey you will inspire colleagues and others outside your organisation to do what they can too.
2. Support the causes you care about
CAF’s payroll giving scheme, Give As You Earn (GAYE), enables you to donate to any charitable organisation in the UK. In line with HMRC rules, this includes not just registered charities, but also schools, universities, community groups, religious organisations and more.
With access to over 160,000 verified UK organisations, you can give to the causes that you care about. Also, if your chosen charitable cause is not already verified by CAF, we can help you to complete the due diligence required to support it.
“Being able to support your community or chosen charity is a privilege. The GAYE scheme is fabulous as it allows you to budget your contributions and distribute on your own timescale with the added tax incentive benefiting all concerned. I encourage everyone who contributes to charity, no matter how little, to do it through payroll giving – it just makes sense.”
- David Mercer, Chief Executive Officer LMAX Group
3. Choose the simple, flexible way to give
Payroll giving is straightforward to organise and manage.
After the initial set up, your donations are automatically deducted from your pay before tax, removing the need to claim via a self-assessment tax return.
You can also choose between making regular monthly donations or one-off contributions, for example, following a bonus. Additionally, you have the flexibility to update your instructions at any time, allowing you to adjust your giving to suit your current circumstances.
For example, when you sign up for GAYE, you can choose to donate directly to charity or use a GAYE Charity Account. Direct donations are a simple and effective way to ensure your contributions go straight to your chosen causes. While the GAYE Charity Account enables you to accumulate funds in your online account, then donate when you are ready.
You also have the option to fund a CAF Trust or CAF American Donor Fund Account (for dual UK-US taxpayers). Choosing between these options allows you to tailor your giving in a way that aligns with your goals.
4. Give tax-effectively
One of the major advantages of payroll giving is the immediate tax relief it provides. With donations taken before tax, it helps make charitable giving more affordable. Crucially, it frees up more funds for you to contribute to charity as you wish.
For example, a £1,000 donation, costs £600 for a higher-rate taxpayer (40%), or £550 for an additional-rate taxpayer (45%).
5. Enable charities to focus on their mission
Many charities prefer payroll giving because it removes the administration usually involved in claiming Gift Aid. This frees up more time and resources to focus on their mission. In addition, regular donations provide charities with a reliable income that allows them to plan more effectively.
