A new campaign could boost payroll giving by around £150 million over the next decade, it has been announced.
Led by Barnardo’s, Crisis, The Royal British Legion, RNIB and WaterAid, the initiative aims to “double the number of people” using their salary to give to charity.
Payroll giving is used to donate money to charity without paying tax on it. While it must be paid through PAYE from an employee’s wages or pension, few employers actively run a payroll giving scheme.
According to research, just two in 10 (80 per cent) workplaces offer payroll giving and just four per cent of UK employees use one.
But Richard Packman, managing director of the campaign, known as WeAreGoodGiving, says payroll giving is one of the most tax-efficient ways to donate.
“Giving through payroll is the most tax-efficient way for employees of any company to donate to any charity of their choice,” he said.
“We will put payroll giving back on the map, drive a huge amount of new income for charities and enable employees of any size business to support the causes they care about in the most efficient and convenient way.”
Mr Packman says the campaign aims to double the number of employees using payroll giving and to raise an additional £150 million for the sector by 2030.
The latest statistics suggest that around £130 million is raised through payroll giving each year, representing around £40 million in tax relief.
To learn more about payroll giving, please click here.
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