A new multi-million pound government initiative aims to encourage smaller firms to set up payroll-giving schemes, and to encourage employees to channel monthly donations directly from their salaries to their favourite good cause.
Payroll giving makes it easy for individuals to donate a regular amount tax effectively to a charity of their choice.
The £8.3m investment in the new programme was announced by the Chancellor Gordon Brown in the budget. Small and medium-sized enterprises will receive a one-off grant of up to £500 depending on their size, as an incentive to set up a payroll-giving scheme.
In addition, the Government will match pound for pound, up to a maximum of £10 per month, an employee’s donation for six months from when the employee signs up.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
There will be an operational launch of the scheme early in 2005, which will be administered by the Institute of Fundraising.
