Campaigners urge more employers to offer payroll giving

Campaigners are calling on more employers to offer payroll giving schemes amid a decline in this type of work-based scheme to support good causes.

They warn that the number of employers offering Payroll Giving is falling, and dropped by 13% between 2020 and 2022.

“This means thousands of PAYE employees are missing out on an opportunity to give more effectively and support causes they care about, potentially denying charities of millions in sustainable funding,” warns the coalition of charities and salary sacrifice organisations involved in Payroll Giving Month, which take place this month.

To encourage more firms and other employers to offer payroll giving the group has launched a petition to urge firms to:

• Demonstrate commitment to social responsibility by offering a Payroll Giving scheme
• Make charitable giving accessible and straightforward
• Empower their employees to support causes they believe in

The petition promotes the tax benefits of offering payroll giving. For every £10 donated an average tax payer would pay £8.

“Through Payroll Giving, not only does the donor receive a tax deduction immediately on their donation, but charities also benefit from a reliable source of income enabling them to plan better for the future,” states the petition.

“Employers enhance their Corporate Social Responsibility profile and demonstrate their commitment to causes your employees care about, which is shown to aide staff recruitment and retention, and improve morale.”

A Charities Aid Foundation (CAF) report released last month warned that currently just one in four companies donates to charities, through payroll giving or through other fundraising initiatives.

This leaves firms at risk of losing the loyalty of their staff, particularly among their younger workers, its research suggests.

Just over half of all workers say working for a firm that supports charities increases their loyalty to their employer and their pride in working there.

This increases to more than three in five generation Z (16–24-year-olds) workers.