Company and Employee Giving
Payroll Giving Scheme
One of the quickest ways for your company and your employees to support the work of RASAC is by setting up a Payroll Giving scheme.
Payroll Giving is simple and tax efficient and allows employees to regularly donate to a charity such as RASAC directly from their gross salary. Payroll Giving is quick and easy to put in place whatever the size of your business and can help raise millions of pounds for charities such as ours.
How does it work?
Once your Payroll Giving scheme is set up employees simply sign up to start donating. At each pay day the employees chosen donation amount is taken directly from their salary by the companies’ payroll department. The donation is taken after National Insurance, but before tax, meaning that their donation will cost them up to 40% less than the amount they are donating (see the table below)
| Employee Pledge | Cost to employee (20% tax rate) | Cost to employee (40% tax rate) |
| £5 | £4 | £3 |
| £10 | £8 | £6 |
Company benefits
There are very real business benefits to offering Payroll Giving to your employees. Benefits to the company:
- Boosting your company’s reputation
- Showing commitment to a local charity
- Showing your employees you care about local charities
- Minimal set up costs to start a scheme
- Enhancing your companies Corporate Social Responsibility profile
Benefits to employees
- The only way of giving that allows full tax relief on donations
- Allows them an easy way to support a local cause which is close to their heart
- They can stop or change their gift at any time, giving them flexibility in how much they donate
Setting up Payroll Giving
- Get everyone on board
- Sign up with a Payroll Giving Agency (such as CAF: Charities Aid Foundation Phone number: 03000 123 000 Website: http://www.cafonline.org)
- Promote the scheme to your employees
- Employees sign-up up to the scheme. They can sign up to Payroll Giving through a Professional Fundraising Organisation, RASAC are registered with the Charities Aid Foundation (CAF) www.cafonline.org
- Donations from employees begin
If you’re interested in setting up a Payroll Giving Scheme the HMRC website has more information.