Payroll giving schemes donated £81 million to charity last year

The number of employees donating to charity through their employer’s payroll scheme has risen by more than 150% over the past 10 years, figures have revealed.

Last year, £81 million was donated to charity by the 500,000 employees who give every month through the “Give As You Earn” payroll giving scheme. This is an increase of 153% on the £31 million donated in 1999/2000, according to the Charities Aid Foundation (CAF).

Around 3,000 UK employers offer this benefit to their staff and many match fund donations, often doubling the amount that goes to their employees’ chosen charities.

John Low, chief executive of the CAF, said that the recession and higher taxes have made people realise the importance of giving tax-effectively to boost donations, but warned that more could be done.

“Only 44% of UK employees on a payroll have access to a workplace giving scheme,” he said. “It would be great for charities and those dependent upon them if all companies offered payroll giving and the Government could boost their ‘Big Society’ plans by leading this.”

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A CAF survey of 100 business leaders recently found that 70% would support the Government introducing a universal payroll giving scheme.

Further information on payroll giving is available on XpertHR.