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News - 29 January 2005
Are Face-to-Face charity worker too much in your face?

Government offers charity incentives that could displace chuggers

Encourage your staff to give direct to charities and you will increase their gift by up to 40%. You might also enable the charities to become less reliant on chuggers (and increase the donation by a further 80-90%). And if that isn't enough incentive the government will also give you up to £500 for setting up the scheme.

A new UK-wide initiative - the Payroll Giving Grants programme - is rewarding any employers, with fewer than 500 staff, for setting up a Payroll Giving scheme with a cash incentive of up to £500.

By setting up Payroll Giving, employers enable employees to give to charity straight from their gross salary and to get immediate tax relief of up to 40% of each donation. As an additional incentive, the new grants programme will match the first £10 donated by each employee, every month, for a period of six months.

The Payroll Giving Grants programme, a Home-Office funded initiative, is administered and promoted by the Institute of Fundraising and Business in the Community.

Fiona Mactaggart, Home Office Minister, said, "By donating money straight from their salary, employees can make a regular commitment to their favourite good cause. Payroll Giving makes it easy for people to give money tax-efficiently because donations are made before tax is deducted from an employee's salary. Charities also benefit from regular, reliable funding and it gives businesses the chance to connect with their local community.

"Payroll Giving is something every organisation can get involved in, whatever their size. I hope this innovative new scheme - through which the Government will double employees donations by up to £10 per month - will encourage more small and medium sized businesses to get on board."

If enough organisations set up Payroll Giving Grants charities will become less dependent on the agencies that supply face-to-face direct debit fundraisers. These agencies take up to 90% of the donation in the first year so the charity would benefit significantly from direct giving.

Read related items on:
Government, Central
Mactaggart, Fiona

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