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It’s safe to say that most of us have seen the charity TV ads asking us to donate and felt that familiar pang of guilt. We all want to be able to do more to help charities and donate where we can. If you’ve been considering ways you can help to make a difference and increase your donations to charity- it is well worth considering payroll charitable giving. Many people are not aware that they are able to donate to charity this way, so we’ve created the following guide to help explain the benefits of payroll giving.
What Is Payroll Giving?
Payroll giving is a way of donating to charity directly through the company you work for. You can decide the amount you wish to donate with every paycheck, and as the money goes out before you receive it- you won’t notice it’s gone. Any employee can ask to set up charitable donations through their employer as a way to ensure they are making regular payments to their chosen charity, so need for you to have to remember to do it yourself.
Why Donate Through Payroll?
There are a number of benefits to donating to charity through payroll. PayCaptain’s charitable giving scheme takes your charity payments directly from your salary before tax- so your tax relief gets sent to the charity. As most charities gain donations after income tax has been paid, they have to claim Gift Aid to get the tax money back from HMRC. This means they have administrative costs involved with donations received from net earnings. By taking the money directly from your gross earnings, they are able to miss jumping through all the tax hoops- so your charity of choice can focus the money donated to more important causes. The payments are automated, so it takes the process of making donations manually off your shoulders too- easier all round!
Donating to charity makes us all feel better, but although you may have the intention of making regular charity donations, life gets on top of us all and it’s understandable if you sometimes forget or don’t get round to doing it. By asking your employer (or setting it up with your own business) to set up payroll charitable giving- you’ll know that your favourite charity is receiving regular donations from you, so you can feel even better when receiving that paycheck. Most people have more than one cause they care about, so it is likely that you have several charities you would like to regularly donate to. With payroll giving schemes there is also usually the option to donate to multiple charities, so you don’t have to choose one over the other.
Encourage Donation Giving From Others
Payroll giving schemes also offer the feature for employers to match the donations their employees make. This can be either to a charity of the employer’s choice or the same charity. By choosing to donate some of your paycheck each month to a charity it sets a good example for others to follow, meaning more potential charity donations.