Companies

There are several ways in which companies can donate:

• Payroll giving
• Sponsor an event or publication
• Make a donation – gifts in kind as well as cash

Payroll giving

Payroll giving is a simple, tax effective way to give for employed people. An employee’s donation is deducted from their gross salary, meaning that their overall tax deduction is lower. The tax they would otherwise have paid on the donation is refunded to them.

For example, a donation of £10 would actually cost the donor £7.80

Why should companies consider offering payroll giving?

Payroll giving is a way for companies to demonstrate empathy with the needs of their employees, and also with the needs of society at large. By facilitating payroll giving, you would be encouraging corporate social responsibility, which, in turn, will boost positive PR and brand recognition.

How does it work?

To administer a payroll giving scheme, you will need to register with a payroll giving agency (PGA). There are nine different agencies – visit www.payrollgivingcentre.org.uk for more details. This website also has a question and answer section on payroll giving and advice on how to promote it. The PGA makes a small charge to the donor, but increasingly, companies are choosing to meet this cost, so that a chosen charity receives the full intended donation from the employee.