Since its introduction 20 years ago, Payroll Giving has raised more than £700 million for UK charities. Payroll Giving UK is using the anniversary to launch a new campaign to raise more money for the third sector by signing up 20% of PAYE employees to Payroll Giving.

“If 20% of PAYE employees in the UK gave £5 a month to charity through Payroll Giving, the scheme would raise more than £400 million a year,” said Peter O’Hara, managing director of Workplace Giving UK.

The organisation is calling on employees to mark the anniversary by adding 20% to their employees’ donations for the coming year, and offering a one-off donation of £20 for all employees joining the scheme in the next 12 months.

It is also encouraging companies to invite all staff born in 1987 to take part in the scheme, and write to 20 of their competitors and suppliers to call on them to join the giving programme.

“Payroll Giving is the single most tax-efficient way of giving,” O’Hara said. “We need to make sure that it raises more than £700 million in its second 20 years.”