Charity Begins At Work

Approximately 42 per cent of people questioned in a new survey said they would be likely to donate to charity using payroll giving if their employer offered the scheme. Commissioned by the Charities Aid Foundation (CAF) and The Royal Bank of Scotland Group, the study aimed to measure people's awareness and perceptions of payroll giving.

Payroll giving is an easy, tax-free way for employees to donate direct from their pay. But despite its growing popularity, just over half the working population are actually aware of it.

Commenting on the new findings, Stephen Ainger, Chief Executive of CAF says, "The research shows that £95 million is currently given through the payroll. This is an excellent figure, but it is generated by only 2 per cent of all tax payers. If those questioned who said they would give through their payroll actually did so, this would generate £1.4 billion more for charities every year."

The survey also showed that eight out of ten people think it is important for employers to encourage their staff to donate to charity, and one in five said they would be more likely to choose an employer that offered payroll giving over one that didn't.

According to Cathy Pharoah, Director of Research at CAF, "The survey found that an amazing 78 per cent of employees have given to charity at work over the last year. It is a lost opportunity that most of this is not given tax-efficiently. Employees said that they liked payroll giving for its convenience, regularity, and tax-efficiency, and the fact that some employers match their donations. If more of this wonderful generosity at work were given tax-efficiently through the payroll, charities would receive so much more."

The report is sponsored by RBS Group, the largest corporate payroll donor in the UK, which double-matches all staff donations to charity.

Neil Roden, Director of Human Resources at RBS, says, "Evidence shows that staff are looking at more than just salary when it comes to choosing an employer. RBS recognises the importance of helping staff support the causes they care about. Since we started double matching staff donations in 2001, more than £25 million has been generated for thousands of charities across the UK."

More than 12,000 Royal Bank staff use payroll giving to donate to the 2,500 charities of their choice which range from well known causes such as Cancer Research, NSPCC and Oxfam to personal favourites such as local Brownies and village halls.

The research report follows the launch of a government initiative aimed at boosting payroll giving amongst small and medium-sized enterprises in January. Companies with fewer than 500 employees can receive a grant of up to £500 to set up a payroll giving scheme. In addition, government will also match the first £10 donated by each employee every month for the first consecutive six months.

5 out of 10 employees do not know what payroll giving is. The research coincides with a television advertising campaign, featuring Cancer Research UK, NSPCC and Oxfam, aimed at encouraging more employers and employees to take part in payroll giving. Supported by The Royal Bank of Scotland Group, the theme of the adverts is similar: that anyone can make a difference to the treatment of cancer, child abuse and world poverty through regular giving.

6 out of 10 employees say their employers encourage charitable fundraising at work, and nearly 8 in 10 employees gave to charity at work in the last year, but much of this was not given tax-efficiently. Employees who do payroll giving like it because it is convenient, it is tax-efficient, it is a regular way of giving and donations can be employer matched.

Web Links

More information on payroll giving can be found at: www.hmrc.gov.uk/payrollgiving

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