Payroll giving is popular among payroll professionals, according to research by the Chartered Institute of Payroll Professionals (CIPP).
The CIPP Payroll Giving Schemes survey found that nearly three-quarters (73%) of payroll professionals operated payroll giving within their organisations.
Of those that do not run a scheme, 18% said they are considering implementing one in the future, and over half (55%) would maybe consider it.
Nearly two-thirds (63%) of respondents that do not operate a scheme foresee a lack of employee engagement as the main barrier for its success.
More than half (53%) said the uncertainty around the administration process was a reason for not implementing a scheme, while 37% cited cost as a barrier.
However, two-fifths (41%) of those that currently run, or are considering operating a scheme, said their employees have requested a payroll-giving scheme, and more than a third (37%) stated it provided a tax saving to workers.
A third (33%) thought it required a minimum amount of administration work, but is a benefit to employees and charities.
Karen Thomson, associate director of policy, research and strategic visibility at the CIPP, said: “I am impressed by the number of CIPP members that responded to our survey who said they currently operate a payroll-giving scheme, as well as those who are considering implementing one in the near future.
“However, it appears one of the main obstacles that prevent organisations from operating a scheme is due to the lack of understanding and communication around the process.
“I encourage payroll departments to speak to their employers about what implementing a payroll-giving scheme entails and whether it would be a feasible option for the company.
“Furthermore, payroll departments should also speak to their employees about the benefits of payroll giving for both the company and charity involved, especially the applicable tax deductions.
“Payroll giving is a fantastic and cost-effective way for employees to provide charitable donations to the causes they care about.”
Rosie Runciman, campaign manager at the Geared for Giving Campaign, added: “The campaign is not just about encouraging more companies to offer the scheme; it is about ensuring those which do communicate it effectively with their workforce.
“Many employees are not even aware their employer offers this facility to enable them to give to their favourite causes so easily, and, even among employees who are aware their employer has such a scheme, some are not always sure about how to take part.”
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