You're an employer and you like the sound of what we do in principle. So what more do you need to know to take the leap?
What exactly is Workplace Giving?
Workplace Giving (also known as Payroll Giving or Give As You Earn) is an HM Revenue & Customs scheme that enables employees to donate tax-free to any charity in the UK, through their pay. As a donation is made from an employees gross pay, their chosen charity receives their donation plus their tax so giving in this way is worth up to 40% more.
Why is it effective?
Workplace Giving is simple, efficient and flexible because it enables your employees to donate to a UK registered charity of their choice, directly from their wages. Donations are up to 50% more effective for the charity, as they are tax-free.
Workplace Giving is also the only way for a 40% or 50% rate taxpayer to donate their full tax on a charitable donation (unlike Gift Aid, which is only ever a standard rate tax-free donation).
Will it appeal to all our employees?
You won't know until you give it a go, but many of the employers we work with have between 30-40% of their workforce giving in this way.
Is Workplace Giving right for my employees?
Yes - if you are looking for the most tax effective way for your employees to give to their chosen charity.
Are there any spin-off benefits?
Workplace Giving is a great way to introduce Corporate Social Responsibility to your employees. The scheme can also boost staff morale and help with staff retention. And it complements your existing volunteering and charity of the year programmes.
How much does Workplace Giving raise for UK Charities?
Last year the scheme raised £116 million, including £13 million through employer matching. And the scheme is growing every year.
We know you've heard it before, but your employees contributions really do make a difference.
What will it cost us to set up?
Nothing - nada - not a penny, just the time it takes to complete the paperwork (2 simple forms) and make the initial employee deductions. Any additional set up costs though can be set against your annual corporation tax.
Of course - if you want to add to your employees' contributions there are plenty of ways to do this - see How to enhance.
How can we implement Workplace Giving?
Implementing Workplace Giving for your employees is a quick and easy process. All you need to do is register with an HM Revenue & Customs approved Payroll Giving Agent and have the facility to make pre-tax deductions on your payroll system - 99% of payrolls do! See How to implement.
How does our payroll department administer the scheme and how much time will this take?
Your payroll department will need to set up a deduction for those employees that want to take part, similar to a pension deduction. This will be made before tax but after NI is deducted. Payroll then sends monthly donations to the Payroll Giving Agent, who will forward the donations to the charities chosen by your staff.
Together with your monthly payment, your payroll department will need to send a list of employees taking part, how much they are giving and if there are any changes from the previous month's list - i.e. if someone has left the company and their donation has ceased.
On average it takes just ten minutes per month for payroll to administer the Workplace Giving scheme. See How to implement for more information.
We have an outsourced payroll. Can we operate Workplace Giving and will our provider charge us to administer these deductions?
Yes even with an outsourced payroll, you can still operate Workplace Giving. Most of the UK's payroll bureaus do not charge to administer this scheme- if they do you can avoid extra costs by sending the monthly payment directly to the Payroll Giving Agency.
Who can take part?
All PAYE employees are eligible to take part in the scheme, including pensioners - in fact anyone on your payroll!
Which charities can employees give to?
Employees can give to any UK registered charity or organisations that have charitable status. This makes it possible to give to an international, national or very small local cause such as a church or hospice.
What if my employee decides to change their charity or cancel their donation?
Workplace Giving is a flexible scheme. Employees can change their donation amount, add new charities, or cancel donations when they choose. Most employees, once signed up, give for 8 years, or until they leave your employment. That's why it's so good for charities!
How can we effectively promote our scheme?
Can we promote the scheme ourselves?
Most employers lack the time, manpower and know-how to promote Workplace Giving themselves, so those that take this route usually end up with a very low uptake.
Low uptake is very rarely due to lack of interest from employees - more from ineffective promotion.
By using our free services and expertise, you can get on with your core business while we do the work for you.
The biggest benefit of having a Workplace Giving Advisor explain the scheme to your employees face to face is that it gives them an easy opportunity to take part.
See How to Promote for more ideas.
Can we enhance our Workplace Giving scheme?
Yes - and we encourage you to do so. Uptake of Workplace Giving is always greater from staff when their employer enhances the scheme.
It also shows that you are a good employer, are socially responsible and care about the charities your staff support.
We have plenty of different ideas to suit your budget - take a look at How to Enhance.
Can we operate Workplace Giving trough Flexible Benefits?
Can we operate Workplace Giving as a Salary Sacrifice?
The simple answer is no. This is because Workplace Giving always allows individual employees the freedom of choice to make donations to causes that are important to them. Salary Sacrifice schemes don't allow this choice, as in effect the individual employee is "sacrificing" his or her salary and so doesn't have any say over what charity or cause they donate to.
How is Workplace Giving UK funded?
Workplace Giving UK is paid through the pre-allocated fundraising budgets of the charities we represent - as featured on this website. Only when we generate support through our work do we get paid a one-off fee from the charities we represent. This payment does not come directly from the Workplace Giving donation of your employees. See About us for more information.
Enough said ?
If there's something we haven't covered then please contact us.