SMALLER BUSINESSES OFFERED UP TO £500 TO GET BRITAIN GIVING
26 January 2005 - Institute of Fundraising

HARLEY-DAVIDSON ONE OF THE FIRST TO HIT THE THROTTLE

Launched today, 26th January 2005, a new UK-wide initiative - the Payroll Giving Grants programme – is rewarding any employer with fewer than 500 staff for setting up Payroll Giving with a cash incentive of up to £500. By setting up Payroll Giving, employers enable employees to give to charity straight from their gross salary and to get immediate tax relief of up to 40% of each donation. As an additional incentive, the new grants programme will match the first £10 donated by each employee, every month, for a period of six months.

Local employer Harley-Davidson has signed up to the scheme and is eligible for a grant, with around 25% of employees supporting good causes through the payroll. Garry Brumfitt, Director of European Affairs at Harley-Davidson, comments:
“Payroll Giving allows our staff to feel closer to their chosen charities, it is easy to administer and, because of the matching scheme, it means that those charities get even more from our money. Most of our employees have chosen to support BEN – the Motor and Allied Trades Benevolent Fund.”

Fiona Mactaggart, Home Office Minister, speaking today, said:
''By donating money straight from their salary, employees can make a regular commitment to their favourite good cause. Payroll Giving makes it easy for people to give money tax-efficiently because donations are made before tax is deducted from an employee''s salary. Charities also benefit from regular, reliable funding and it gives businesses the chance to connect with their local community.

''Payroll Giving is something every organisation can get involved in, whatever their size. I hope this innovative new scheme - through which the Government will double employees donations by up to £10 per month - will encourage more small and medium sized businesses to get on board.''

''2005 is the Year of the Volunteer and Payroll Giving is one of a number of ways in which people are being encouraged to give their time, talents and money to the voluntary sector.”

Tina Steele, Project Manager of the Payroll Giving Grants programme, adds:
“This new grants programme is intended to give even the smallest organisations, with minimal budgets, the chance to play their part in generating a regular, reliable income stream for charities and to make a difference in this way. Payroll Giving is good for business and a real benefit to offer employees. What’s more, it’s quick and easy to set up and run. So, if you haven’t already established a scheme, then now is the time. There’s never been a better time for giving”.

Payroll Giving enables employees to donate to any UK charity straight from their gross salary, giving immediate tax relief. The new grants programme, matching donations of up to £10 from each employee every month, for the first six months after they have signed up to the scheme, is a real incentive. This means that £10 donated each month would be worth as much as £20 to the charity and yet it will only cost employees paying standard rate tax £7.80 (or £6 for higher rate taxpayers).

In 2003-04, £91 million was raised for charities through Payroll Giving alone, although only 1% of UK companies currently offer the scheme. The Payroll Giving Grants programme is working to encourage more companies across the sector to make Payroll Giving available to staff and to provide vital support for charitable organisations and the local community. As an employee donations scheme with minimal administrative requirements or costs, Payroll Giving can be an ideal way for organisations with small budgets to generate a regular, reliable income stream for good causes.

The Payroll Giving Grants programme, a Home-Office funded initiative, is administered and promoted by the Institute of Fundraising and Business in the Community. The aim of this programme is to provide sustainable income sources for UK charities by increasing the number of employers and employees engaged in Payroll Giving. Grants are payable to organisations with fewer than 500 employees that sign up to Payroll Giving before the end of 2006 and will be backdated to those that have recently signed up (since 06 April 2004).

www.payrollgivinggrants.org.uk

More News
  For January 2005
  From Institute of Fundraising
  For Associations
  Biker247.com Home Page