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Just one in five employees can access payroll giving

by Kavitha Sivasubramaniam
07/02/2023
bonus, Northern Ireland, pay
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New research from Charities Aid Foundation (CAF) has found that just one in five (18%) of employees say they have access to payroll giving at work.

Released to coincide with Payroll Giving Month this month (February), the findings show that two in five (41%) respondents aren’t even aware if the service is available to them, while a similar percentage (40%) don’t think their employer offers payroll giving at all.

Mark Greer, managing director for philanthropy services at Charities Aid Foundation, said: “Working for a business that has a social purpose matters to employees and jobseekers. How a company supports its communities, whether local or global, is increasingly seen as fundamental to attract and retain talent in a world where competition is high.

“However, corporate responsibility needs to be authentic and transparent. Embedding purpose by engaging employees and partnering with charities can help a business to have a positive impact on society and meet its strategic goals. Payroll giving is an accessible and affordable way for employees to engage with their employer’s responsible values. By matching your employee’s donation, you can work together to have a positive impact on society.”

The research also revealed that nearly half (46%) of respondents do not know if their employer donates a percentage of its profits to charity, while 35% think they don’t give any profits to good causes.

However, almost half 47% of employees claim they would be more inclined to work for an employer that donates to charity. In addition, given the current cost-of-living crisis, nearly seven in 10 (68%) think companies have a duty to support their local communities.

Payroll giving through the payroll is tax effective because donations to charity are deducted from pay before income tax is calculated. This means that if a base rate taxpayer gives £20 or a higher rate taxpayer donates £15, the charity itself will receive £25.

The scheme allows charities to receive a regular and reliable income, while reducing administration and fundraising expenses at the same time. Many organisations also match their workforce’s payroll giving donation, which can effectively double the amount a charity gains.

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