Payroll-giving schemes require minimal effort, but provide the advantage of full tax relief, because it enables the charity to benefit from all rates of tax relief above the basic rate of 20%.
Although payroll giving has been around since 1987, there are still many organisations that are not engaging with an existing scheme or do not have a scheme at all. At a time when charities are struggling due to several extremely challenging years, payroll giving is essential to helping them to continue their vital work.
Around £150 million is lost each year on tax relief that is unclaimable due to the gift aid box not being ticked, even when the donators qualify.
However, over £2 billion has been raised through payroll giving since 1987. In 2023 alone, £130 million was raised for thousands of charities and good causes. Imagine what could be achieved if there was a greater awareness and more employers actively offered and promoted payroll giving.
The Chartered Institute of Payroll Professionals (CIPP) is part of the Accessible Payroll Giving project, which is a cross sector and cross-stakeholder initiative, to build a business case that could be taken to government to encourage the mandating of the payroll-giving scheme for medium-to-large organisations.
Payroll giving month is celebrated in February every year. A whole month where payroll giving agencies, payroll funding organisations and employers have an opportunity to make a meaningful difference by promoting and raising awareness of payroll giving.
Sarah Smith is policy and research officer at the Chartered Institute of Payroll Professionals (CIPP)
