Grant for payroll giving

A new initiative - the Payroll Giving Grants programme - is rewarding any employer, with fewer than 500 staff, with a cash incentive of up to £500 for setting up a Payroll Giving scheme.

Payroll Giving enables employees to give to charity straight from their gross salary and to get immediate tax relief of up to 40 per cent 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.

Payroll giving

The Payroll Giving Grants programme, a Home-Office funded initiative, is administered and promoted by the Institute of Fundraising and Business in the Community.

Fiona Mactaggart, Home Office Minister, 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."

Smaller businesses

Tina Steele, Project Manager of the Payroll Giving Grants programme, urged smaller businesses to take part. She said: "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".

In 2003-04, £91 million was raised for charities through Payroll Giving alone, although only one per cent of UK companies currently offer the scheme. The Payroll Giving Grants programme is working to encourage more companies to make Payroll Giving available to staff and to provide vital support for charitable organisations and the local community.

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).

Grants are tiered according to the size of the organisation. £300 for employers with 1-199 employees, £400 for those with 200-249 employees and £500 for those with 250-499 employees. Donations will be matched during the first six months of an employee's gifts, until the end of the programme in March 2007.

For guidance materials and further information, call 0845 602 6786