Payroll Donation: All You Need To Know To Start
If you’re starting a new business or have an existing business and would like to do more to help charities, consider setting up a payroll donating scheme.
Many of us wish we could donate to charities more frequently and help to make a difference to causes we care about.
Payroll donating provides an opportunity to make regular, flexible donations to any charity or multiple charities of your choice.
Read on to find out more about this fantastic scheme.
What Is Payroll Donating?
Payroll donating is a scheme whereby businesses and employees can set up regular donations through their payroll to a charity or multiple charities. As the donation gets taken straight from a gross profit rather than a net profit, no tax gets taken from the donation.
This means that the charity organisations receiving the donation don’t need to claim the tax back from HMRC. Saving on time and admin costs.
The scheme is easy to set up and donations will automatically be taken each payday by a payroll giving agency. The donations can be adjusted or cancelled at any time, and you can add another charity organisation should you wish.
Why Offer This Scheme For Your Employees?
So what are the benefits to you as an employer offering this scheme to your employees?
Well, first and foremost it gives your team the opportunity to make regular donations to the causes closest to their hearts, without having tax deducted from their donations. As the money goes out before they even see it, once set up, they won’t have to think about the donations they are contributing.
Not only is donating more convenient this way for your employees, but it will help to boost morale and their feel-good factor. Also, consider how taking part in this scheme will reflect on your business and yourself.
If businesses create opportunities for their team to make charitable donations through their employer, it shows the integrity of you as a business.
Setting Up Payroll Giving
Discuss the scheme with your team and get them on board. Talking together about what charities you would all want to donate to will also give you an opportunity for a team bonding exercise.
Discussing what charities your employees care about and the importance of charitable giving in business will help you to get to know your team better.
Of course, give your employees the option whether to take part or not. However, once the decision has been made for who is taking part and what charities they’ve chosen, you can then contact a payroll giving agency.
Matched giving is offered by most payroll giving schemes. It offers the opportunity for you to match the donations that your employees make.
This sets a good example for your team. It also encourages them to take part, knowing their chosen charities will receive double the donation they contribute.