Most companies still do not allow staff to contribute to charities through their salaries.
According to the poll by YouGov for KPMG, 58% of the 11000 people in employment questioned said their employers do not offer a ‘payroll giving’ scheme through which they could make donations.
KPMG points out that “Payroll giving schemes allow employees to donate money on a regular basis direct from their salaries, using tax efficient methods. Even before the Tsunami Earthquake disaster in the Indian Ocean, the UK government said it wants to encourage more payroll giving.”
In his pre-Budget Report last December, Chancellor Gordon Brown announced an initiative worth £8.3 million by which enterprises of up to 500 employees would receive a grant of up to £500 if they establish such a scheme.
The schemes are tax efficient because charities receive the full donation made by employees, whilst employees receive tax relief on the donations made. For standard rate taxpayers wanting to donate £10 a month, the charity will receive £10, but as this is taken from gross pay, the effective cost to the employee is £7.80.
Sir Brian Hill, chairman of The Children’s Trust appealed to employers to establish schemes, saying that in the case of the Trust the scheme is “a vital and regular income that enables us to plan and to know with confidence, that we can continue to provide the particular care, therapy and support that our children need.”
He also said that it enables the Trust to “build closer relationships with companies, as their employees are our advocates.”
