FIVE WAYS THAT PAYROLL GIVING HELPS CHARITIES

If you want to give to charity on a regular basis, payroll giving - or donating to charities via your salary - is one of the simplest ways to make donations to your favourite causes. And because it’s tax-effective, it’s great for charities too.

Here are just five ways in which giving via your wages can help charities:

1 CHARITIES GET MORE OF YOUR DONATION

Payroll giving comes out of your salary after National Insurance, but before tax. This means that you get tax relief on your donation which can be passed onto your charity. If you’re a higher tax rate payer then this benefit increases. Here’s an example of how it works:

You’re a standard tax payer at 20% and make a monthly donation of £20 to your chosen charity. When the money is taken from your salary you’ll be paying £16 but the remaining £4 will be money you would have paid in tax and not seen in your wages anyway.

You’re a higher rate tax payer at 40% and wish to make a monthly donation of £20 to your chosen charity. When the money is taken from your salary you’ll be paying £12 but the remaining £8 will be money you would have paid in tax and not seen in your wages anyway.

You can find out more about the tax benefits on our CAF Give As You Earn page.

2 CHARITIES CAN RELY UPON REGULAR DONATIONS

By signing up to a payroll giving scheme, you’ll be helping your chosen charity to plan and forecast their incoming funds much better, as they’ll know they’ll be getting your donation each month. Regular donations are vital to charities, particularly those which have high outgoings on a daily basis.

3 YOUR DONATION COULD DOUBLE IF YOUR EMPLOYER OFFERS A DONATION MATCHING SCHEME

A number of employers which offer payroll giving also offer to match your donation each month. This is an amazing way of doubling what you’re giving to your chosen charity and is a benefit you can only get from payroll giving. Not all employers offer this, but if your company does, why not sign up and enable your favourite cause to do twice as much with your donation?

4 PAYROLL GIVING REDUCES ADMIN FOR CHARITIES

If you donate in the traditional way - after you’ve paid Income Tax on your wages - charities need to claim Gift Aid in order to get the tax back from HMRC. But with payroll giving, because donations are made before tax, charities don’t have to do this. Reducing the admin for them means they will have lower outgoings on resources and can focus more of their funds upon the invaluable work they do.

5 CHARITIES CAN DEVELOP PARTNERSHIPS WITH COMPANIES

Most organisations realise how important Corporate Social Responsibility is, both for their reputation as a responsible business and a good employer.

By having a payroll giving scheme, they can offer a genuine employee benefit and boost their CSR at the same time. Choosing a charity for the whole organisation to support each year can also be a great employee engagement activity, with additional fundraising events from time to time such as cake sales and raffles.

CAF GIVE AS YOU EARN - THE UK'S FIRST AND BIGGEST PAYROLL GIVING SCHEME

CAF Give As You Earn is an easy way to donate to the causes you care about, straight from your pay. It’s as simple as completing a paper Donor Instruction Form (if your employer’s scheme is paper-based) or donating via their dedicated web portal if they’ve switched to the online version.

START YOUR GIVING JOURNEY

CAF Give As You Earn


An easy way to donate to the causes you care about straight from your pay.

Seven things you might not know about payroll giving


Payroll giving is a great way to give regular support to the causes you care about.

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