Payroll giving scheme raises £1.6bn for charities

Charities Aid Foundation (CAF)’s payroll giving scheme has raised more than £1.6bn for good causes since it launched in 1987, latest figures have revealed

Its Give As You Earn scheme has supported more than 40,000 charities for more than 2,.000 clients and their staff, says CAF.

Payroll giving involves donations taken from employees’ payslips before income tax is deducted. This means that every £25 donation effectively costs the worker £20. The schemes also often involve matched contributions from employers.

CAF’s figures also show that more than £110m was donated to charities through its Give As You Earn scheme during the last financial year, with £35m given by employees and £74m through tax relief.

“We know from our research that employees want to work for a business that has a strong social purpose,” said CAF chief executive Neil Heslop.

“By matching donations, businesses can put their social purpose into action and contribute more to good causes which are important to the people that work for them.

“As businesses and individuals have become more socially minded, payroll giving has also become to a significant workplace benefit. It has also been shown to be a highly effective way to respond to humanitarian emergencies.

“In March for instance, we saw employees respond generously to help people fleeing Ukraine by signing up for payroll giving and increasing contributions, taking advantage of tax relief and employer matching.”

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