Giving Compass' Take:
- Ella Walker-Winslow explains how payroll giving is a simple, tax-efficient way to make regular or one-off donations directly from your salary, providing nonprofits with reliable funding.
- How can leveraging tax-efficient giving methods, like payroll giving, enhance the impact of your donations while simplifying the process for you and the nonprofits you support?
- Learn more about best practices in philanthropy.
- Search our Guide to Good for nonprofits in your area.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
Payroll giving is a powerful way for you to make a difference to the charities and causes close to your heart. It allows you to donate regularly and effortlessly to around 160,000 verified UK charities via your salary, with no extra admin for you to manage. It is all covered by the experts who run your workplace scheme.
How Does Payroll Giving Work?
The way payroll giving works is simple. First, check if your employer offers a payroll giving scheme as part of your employee benefits. You can do this by checking your intranet or benefits hub if your company has one, or by checking directly with your HR/payroll team.
Then, during the enrolment process, you will be asked to confirm the amount you want to donate, to choose the method of giving that suits you best and the charity or charities (you can support more than one) you want to support.
Once this is all set up, your donation will be taken from your pay automatically before tax is deducted. You can start, stop, change or amend your donations at any time.
Can I Give One-Off Donations Through Payroll Giving?
Donations can be made monthly or on a more ad-hoc, one-off basis. You can also give additional donations at the end of the tax year or if you receive a bonus, subject to your wishes.
Is Payroll Giving Tax-Efficient?
Payroll giving is one of the most tax-effective ways you can help to support charity. Donations are taken from your gross pay, or pension, after your National Insurance contributions have been deducted, but before Income Tax is calculated and removed.
You receive tax relief on your donation. The amount will differ depending on the rate of tax you normally pay, making your money go further at no additional cost to you.
Read the full article about payroll giving by Ella Walker-Winslow at Charities Aid Foundation.