- Payroll giving
Payroll Giving or Give As You Earn (GAYE) - Is a tax free way for UK tax payers to give money to UK Registered Charities.
Introduced in 1987, Payroll Giving is a simple, tax efficient scheme which allows employees to give money to the UK registered charity of their choice by having a
deduction taken straight from theirgross pay . There is no tax for the charity to claim back as no tax was deducted.Some companies match or part match their employee donations via Give as You Earn [ [http://www.workplacegiving-uk.com/about-us/case-studies/grainger-trust.php Case study of an employer with £ for £ matching] ] .
Administration
More than 10,000 employers in the UK currently operate the scheme, and circa 2% of UK employees participate. Participating employers deduct agreed sums of money from their employees pay before calculating tax, and forward the money to a payroll giving agency; the agency then distributes the money to registered UK charities in accordance with the employees wishes (minus an administration fee).
Advantages
For Donors
The UK has a progressive Income Tax system with a top rate in 2008 of 40%, and for higher rate tax payers this is a more tax effective way to donate to charity than
Gift Aid , as Gift Aid assumes all donations were from Basic rate Taxpayers.For Employers
As part of a broader corporate
social responsibility policy, Payroll Giving offers employees the opportunity to channel their support for their social concerns whilst at the same time demonstrating the company’s strong credentials as a socially responsible business. Employers with high participation rates can win Bronze, Silver and even Gold awards from the Government [ [http://www.engagemutual.com/MediaCentre/PressReleases/030206.asp Engage wins Gold] ]For Charities
Charities benefit from their donations being tax free.
External links
* [http://www.workplacegiving-uk.com/ Workplace Giving UK]
* [http://www.payrollgiving.co.uk/ Payroll Giving in Action]References
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