More than 25 per cent of workers say they would be prepared to use payroll giving to donate to charities in the future, but many, particularly younger ones, may be deterred from doing so due to a lack of understanding, according to Charities Aid Foundation (CAF) research.
Payroll giving, which provides tax-efficient charitable contributions, attracts younger employees who place a higher value on social impact.
But misconceptions hinder adoption; many people are unaware that they can contribute to many groups, continue to give after retirement, or give to unregistered charities.
According to CAF, payroll giving is provided by more than 4,000 UK employers, including big businesses like Tesco and AstraZeneca with the highest levels of understanding in the banking, insurance, real estate, and technology industries.
CAF offers businesses tactics to successfully encourage payroll donating. First, they ought to put in place a payroll-giving programme and think about bolstering it with employer matching, providing alternatives for matching that are flexible enough to meet varying budget levels.
Second, creating a sense of community through planning activities such as holiday matching campaigns can motivate staff members to donate in unison.
Finally, to foster a giving culture within the company, bosses must set an example by talking openly about payroll giving, making information freely accessible, and publicly endorsing it.
Charities Aid Foundation (CAF) head of corporate clients Philippa Cornish says: “Since its launch in 1987, payroll giving has raised over £2 billion for charitable organisations across the UK. It is an incredibly powerful platform for corporates to increase employee engagement, engender loyalty and signal a commitment to the wider community.
“But to succeed employers must engage their staff – set the tone from the top, communicate regularly about payroll giving and provide clear and accessible information. Together we can continue to build this essential lifeline for thousands of charities.”
RBC Brewin Dolphin charity investment manager Wolfie Papirnik says: “As someone who works in the finance industry, I believe it’s essential to use our resources to make a difference in the world. Businesses generate a significant amount of wealth, and it’s imperative that we allocate it towards promoting social good. Payroll giving offers several benefits including savings for both the employee and the charity. It’s a tax efficient way to give to charity. My employer covers the fees and matches my giving so the impact is financially more significant to the charity than the cost to myself. It’s a great incentive for me to give knowing my organisation is supporting the cause I care about.”
Barnardo’s head of payroll giving Terry Stokesg says: “Payroll giving offers a vital source of income to Barnardo’s. Our services are facing even greater demand against a backdrop of increased child poverty, so the consistent reliable income we get from payroll giving enables us to better plan where we need to allocate our resources. Importantly for charities, with the tax relief coming at point of donation, it removes the need to claim Gift Aid at a later date.”
The post Lack of understanding hinders potential for payroll giving: research appeared first on Corporate Adviser.
