Payroll giving was first launched in 1987 and had only 60,629 employees taking part in its first year. In 2005/06 more than 600,000 employees were signed up to the tax efficient giving programme.

The Institute of Fundraising is celebrating the 20th anniversary of payroll giving by urging charities to encourage more employers and employees to sign up to the scheme.

“It’s fantastic to see the impact payroll giving has made on the income of charities in the 20 years it has been around,” said Institute chief executive Lindsay Boswell. “Payroll giving raises £84 million for charities each year yet only two to three per cent of the population give to charity in this way. It is therefore essential for charities to promote payroll giving in 2007 as a means of maximising their income.”