Payroll Charity Giving: A Guide For Small Businesses
We would all like to do more to help the causes we care about, and when it comes to making charitable donations a lot of us may feel we don’t donate frequently enough. But did you know there is a way for you as a small business owner to offer a scheme where you and your employees can make regular, automated, and flexible donations to all of your collective charities- through your payroll? If you would like to discover more about donating to charity through this kind of scheme, then keep reading.
What Is Payroll Giving?
Payroll giving is a scheme whereby you and your employees can set up regular donations to either a singular or multiple charities of your choice. Usually, charity organisations receive donations from net income meaning they have to claim Gift Aid in order to receive the tax back from HMRC, as well as covering admin costs for them to do so. With payroll donating- the donations get taken from gross profit, before income tax gets deducted, meaning all the money goes straight to the chosen charities and the charity organisations save on admin, time, and money.
Benefits Of Payroll Giving For Employers
Not only do the charity organisations benefit from payroll donations- but so do you and any employees you may have. By making charitable donations, you are setting a good example for the people that work for you as well as other businesses. It will speak volumes about what you stand for as a company, and the integrity you have as an employer. If employees see that you’re willing to help them contribute to something (or even contribute money yourself) that has meaning to them, they will respect you more as an employer, and may feel more loyalty towards your business.
Having the opportunity to offer something that can make both yourself and employees feel better about themselves will help boost morale and create a more contented workplace.
Benefits Of Payroll Giving For Employees
By making charitable donations through their employer, staff can make regular charitable donations without even having to think about it. As the donation gets taken from their gross income, they wont even see the money being taken, and won’t get taxed on it- meaning it costs less to give more! We all know that making charitable donations makes us feel good about ourselves. So, by creating this opportunity for your staff to regularly donate money to help make a difference to something they care about, you could also be presenting an opportunity to make them happier within themselves.
If you decide to set up a payroll giving scheme, you could use it as an opportunity to bring your team together to discuss the charity organisations you would like to donate to. This discussion will involve talking about causes that mean a lot to people, and why they do. So by doing this, your team can all get to know each other better on quite a deep, personal level and build respect for one another- a fantastic team building exercise.