![[UK] Decline in number of employees donating to charities via Payroll Giving](http://gpa.net/cdn/shop/articles/bigstock-Make-a-Donation-Charity-Donate-124979294_1200x.jpg?v=1714614633)
Charities are losing out on valuable income as the number of employees donating via Payroll Giving in the UK declines, CAF reports.
Already stretched charities are going without much-needed donations as fewer employees donate through Payroll Giving, according to research from the Charities Aid Foundation (CAF).
59 per cent of people are reportedly unaware of Payroll Giving, which allows employees to donate to charity via their salary before tax.
Payroll Giving has seen periods of rapid growth, since its 1987 launch, particularly in the late 1990s. However, the total amount donated to charities via the scheme fell 7 per cent year on year from £137 million in 2021 to £128 million in 2022, the most recent year with available data.
The latest data reveals that the number of employees using Payroll Giving has fallen by 13 per cent since 2020 to just 516,000. At present, 30 million people on PAYE are potentially eligible to give through Payroll Giving.
Employers can provide staff with a Payroll Giving scheme - or ‘Give As You Earn’ - which works similarly to salary sacrifice and provides employees with a simple and tax-efficient way to make regular charity donations.
Fewer employers now offer Payroll Giving to their workers. Around 4,000 organisations offer the benefit today. They include Tesco, AstraZeneca and UK government departments.
But the downward trend can be reversed. That CAF figure of 59 per cent highlights a need to increase knowledge and understanding among the general public.
CAF’s research also shows the greatest opportunity among millennial employees and jobseekers; a cohort that increasingly wants to work for employers with a social conscience.
According to the CAF, younger employees are the most likely to say they would use a Payroll Giving scheme with 36 per cent of 16–34-year-olds in favour. However, affordability can reportedly be seen as a barrier to giving.
In addition, employers can encourage participation by taking steps such as making it easy to opt in and out and matching donations.
Neil Heslop OBE - Chief Executive of Charities Aid Foundation - said, “It’s concerning that the number of employers and employees taking advantage of this valuable benefit is declining. It provides an incredibly powerful platform for companies to support their giving in the workplace and can be a lifeline for charities at a time when their incomes are squeezed.
“That’s why we would like to see a renewed and joined-up focus on promoting Payroll Giving from providers, employers and the Government. For individuals who can afford to give, it’s a simple way to donate regularly or even on an ad-hoc basis to causes that matter to you.”
Terry Stokes - Head of Payroll Giving at Barnardo’s - said, “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.”
Source: CAF
(Link and quotes voa original reporting)
Charities are losing out on valuable income as the number of employees donating via Payroll Giving in the UK declines, CAF reports.
Already stretched charities are going without much-needed donations as fewer employees donate through Payroll Giving, according to research from the Charities Aid Foundation (CAF).
59 per cent of people are reportedly unaware of Payroll Giving, which allows employees to donate to charity via their salary before tax.
Payroll Giving has seen periods of rapid growth, since its 1987 launch, particularly in the late 1990s. However, the total amount donated to charities via the scheme fell 7 per cent year on year from £137 million in 2021 to £128 million in 2022, the most recent year with available data.
The latest data reveals that the number of employees using Payroll Giving has fallen by 13 per cent since 2020 to just 516,000. At present, 30 million people on PAYE are potentially eligible to give through Payroll Giving.
Employers can provide staff with a Payroll Giving scheme - or ‘Give As You Earn’ - which works similarly to salary sacrifice and provides employees with a simple and tax-efficient way to make regular charity donations.
Fewer employers now offer Payroll Giving to their workers. Around 4,000 organisations offer the benefit today. They include Tesco, AstraZeneca and UK government departments.
But the downward trend can be reversed. That CAF figure of 59 per cent highlights a need to increase knowledge and understanding among the general public.
CAF’s research also shows the greatest opportunity among millennial employees and jobseekers; a cohort that increasingly wants to work for employers with a social conscience.
According to the CAF, younger employees are the most likely to say they would use a Payroll Giving scheme with 36 per cent of 16–34-year-olds in favour. However, affordability can reportedly be seen as a barrier to giving.
In addition, employers can encourage participation by taking steps such as making it easy to opt in and out and matching donations.
Neil Heslop OBE - Chief Executive of Charities Aid Foundation - said, “It’s concerning that the number of employers and employees taking advantage of this valuable benefit is declining. It provides an incredibly powerful platform for companies to support their giving in the workplace and can be a lifeline for charities at a time when their incomes are squeezed.
“That’s why we would like to see a renewed and joined-up focus on promoting Payroll Giving from providers, employers and the Government. For individuals who can afford to give, it’s a simple way to donate regularly or even on an ad-hoc basis to causes that matter to you.”
Terry Stokes - Head of Payroll Giving at Barnardo’s - said, “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.”
Source: CAF
(Link and quotes voa original reporting)