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Good Deed Feed

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Good Deed Feed

March 30th, 2015

Payroll giving boost to UK charities

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There was great news for UK charities last week as the government signed an agreement with charity representatives and Payroll Giving agencies to raise charity performance and profile.

Payroll giving allows UK taxpayers to donate straight from their wages to charities of their choosing. The Payroll Giving agencies take the money tax free, straight from the person’s salary or pension and then pass it directly on to the charities. The new deal with the government will increase the transparency of the process, boosting its profile and hopefully increasing the amount of people taking part in the scheme.

The increased standardisation of the process will also reduce the cost to charities. Payroll agencies will also be required to submit their accounts in an online database. This will then be collated and published for all to see.

 

What they’re saying about payroll giving

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Exchequer Secretary to the Treasury, Priti Patel, said: ‘Charities provide an invaluable contribution to our society and receive strong support from the government including tax relief on donations.Payroll Giving is one of the most effective ways for donors to give money to good causes on a tax-free basis, and more than a million donors use the scheme each year.’

Chief executive of the Institute of Fundraising, Peter Lewis, said: ‘We welcome the introduction of this memorandum of understanding for payroll giving.Our members have been consistent in their belief that more and better data and transparency in the payroll giving system is needed so that charities and fundraisers are able to grow Payroll Giving income across the UK.’

Adding: ‘I’m particularly pleased that this memorandum has come about through consultation and engagement with payroll giving agencies and charities talking together and agreeing the terms of the document and the standardised reporting mechanisms.

 

Making donating easier

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This new initiative is aiming to make the whole process of donating tax free money to charities much simpler and cleaner. This will hopefully encourage more people to donate in this way, boosting the funds of important UK charities. Who you donate to is up to you but it’s thought that a wide selection of charities will benefit, from the household names to smaller charities, covering everything from mental health to the training and provision of emergency evac equipment.

So why not sign up to your own Payroll Giving scheme and make donating that little bit easier?

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