The proportion of employees donating to a payroll-giving scheme has seen a 12% decline, according to a report from Equiniti ICS.

The HR and payroll services provider also found there has been a decline in donations of up to 50% since September 2008, coinciding with the recession.

Alan Foley, director of Equiniti ICS, said: “Payroll giving is a great way to donate to charities as it is particularly efficient in terms of tax and provides a secure and dependable income stream for the charities.

“However, as with much other discretionary expenditure, it has suffered from the ill effects of the recession, and some charities will inevitably be suffering financially as a result.

“What is significant, and bodes well for the future, is that employees are not deserting their charities altogether and stopping donations completely; instead they are choosing to cut back, which is much more positive in the long term, as it shows an on-going commitment, but tempered by short term personal financial fears.”

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