PRESS RELEASE: Payroll Giving Month 2025: Celebrating Tax-Efficient Charitable Giving
Introduction to Payroll Giving Month
In February 2025, the charity sector and other stakeholders will celebrate the most tax-efficient way to support good causes. Payroll Giving Month will be hosted throughout February 2025, looking to raise awareness and increase the support good causes receive through Payroll Giving.
The Importance of Payroll Giving in Challenging Times
As charities across the country find themselves feeling the effects of the cost-of-living crisis, Payroll Giving is quickly becoming a crucial way people can support a cause close to their heart.
Payroll Giving allows employees to donate to one or more causes with pre-tax donations. This simply means that a 20% taxpayer can donate £10 to charity, with just £8 being deducted from their net pay. For taxpayers with higher rates of income, this saving is even greater. So, it costs less to support the cause people care about.
Despite the substantial benefits for donors and charities alike, the number of people giving through Payroll Giving has also fallen over time, falling 13% in just two years between 2020 and 2022. However, there are opportunities to turn this around. Payroll Giving Month hopes to help this by increasing awareness of this underutilised form of charitable giving amongst employers and their employees, and encouraging businesses to sign up to a scheme.
Understanding Payroll Giving: How It Works
Payroll Giving allows employees to donate from their salaries before tax, meaning the contribution is tax-efficient. For example, a 20% taxpayer can donate £10 to charity, with only £8 being deducted from their net pay. Higher taxpayers will save even more, making it a highly cost-effective way to donate.
Why More Employers Should Participate in Payroll Giving
For employers, running a scheme:
Enhances your corporate social responsibility profile.
Boosts your reputation and public image.
Demonstrates commitment to causes your employees care about.
Aids staff recruitment and retention and improves morale.
Recognition through quality marks and excellence awards.
Payroll Giving Month provides the perfect opportunity for employers to engage in a scheme that both motivates employees and increases an organisation’s social impact, supporting good causes during these difficult times and allowing employees to make tax savings on any donations they wish to make to charity.
Caroline Gaskin from Together for Animals said: “Payroll Giving provides Together for Animals with a vital regular source of income, allowing us to provide lifesaving care for animals desperately in need. As a small charity, Payroll Giving is a key source of income and helps us support thousands of pets and working animals each year. We would encourage companies to support Payroll Giving to give in a tax-efficient way. It makes such an incredible difference to charities across the sector.”
Ejaz Rashid, CEO at GivingForce added: "At GivingForce, we believe payroll giving is one of the simplest and most impactful ways employees can support the causes they care about. Powered by our platform, we know Payroll Giving Month will empower businesses to foster a culture of giving, making charitable contributions effortless, tax-efficient, and meaningful for both employees and their communities."
Payroll Giving Month Partners and Supporters
Payroll Giving Month is being supported by partners across the sector, including the Chartered Institute of Fundraising, the Chartered Institute of Payroll Professionals, Professional Fundraising Organisations, the Association of Payroll Giving Organisations, Payroll Giving Agencies, and Charities both big and small.
How to Get Involved
To find out more about Payroll Giving Month or if your organisation is interested in launching a Payroll Giving Scheme, visit: www.payrollgivingmonth.com
Key Statistics and Benefits of Payroll Giving
Payroll Giving is a successful form of individual giving across the globe. Schemes not only run here in the UK but very successfully in Australia, USA, and many other countries. The method of donating is simple: Payroll Giving donations are taken from pay before tax. A donation of £5 a month would cost an employee £4 from their take-home pay (if they pay 20% tax) or £3 (if they pay 40% tax).
Over 1 million people in the UK donate to charities through their pay, and together, they have raised over £2 billion for good causes.
For charities, Payroll Giving provides an unrestricted source of regular income for their cause, and when they receive donations through Payroll Giving, there is no need to apply for Gift Aid, saving money and time. As opposed to Gift Aid, where donations can only be increased by 25% regardless of the donor’s tax bracket, Payroll Giving allows charities to receive the full tax relief. This is particularly beneficial for donations from higher-rate taxpayers. A 45% taxpayer can see a donation’s value increase by 88%, meaning £100 out of the donor’s pocket becomes £188 going to the charity.
Another key benefit compared to Gift Aid is that the tax relief is available at the point of donation instead of having to be claimed later. The average donation value is larger, notably for those higher-value donors, while attrition is lower with payroll donors likely to continue giving, on average, for up to 8 years.
To contact the committee organising Payroll Giving Month and to find out more about the campaign and how charities and companies can join in, please contact:
Caroline Gaskin, Together for Animals (Campaign Lead): 07545 073 855 or caroline@togetherforanimals.org.uk
If you want to discuss how you can implement Payroll Giving within your organisation today get in touch.
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