“Having said that, a number of key recommendations have emerged from our survey results. Firstly, there is strong evidence from our research that standardising the administration processes between the employer and the Payroll Giving Agency would greatly improve payroll giving schemes. Secondly, the CIPP supports the concept of a centralised system, which will allow employees to join and choose their charities online with a standard instruction provided to the employer. “Thirdly, the CIPP and Workplace Giving UK urges the government to consider National Insurance contribution relief on all payroll giving donations. Whilst the research shows employers would be incentivised if employee relief were offered it would be much simpler for payroll systems and understanding if the relief was offered to both the employer and employee. “Finally, charitable giving is a personal choice and the CIPP believes one size does not fit all. But by permitting donors to select their preferred method of donating and making it easier by offering a centralised online solution, this will go a long way to increase the already generous British public.”
To view the CIPP's full consultation response on payroll giving, including all the survey results, click below.
CIPP Payroll Giving Consultation Response
Payroll Giving overhaul announced
16 September 2013
Further to the Treasury consultation earlier this year, proposals to make it easier for employers to encourage charitable donations using Payroll Giving have been announced .
Payroll Giving enables individuals to donate money to charity directly from their salary via their employer, meaning that their donation is made free from income tax. This means that the charity receives the full donation upfront, rather than having to reclaim the tax afterwards, as through Gift Aid. In 2012 to 2013, Payroll Giving raised £124 million for charities from 750,000 donors. Over £1.4 billion has been donated using this method in the last 25 years. However it is thought that the total amount collected could be considerably higher. Following consultation , the government is to almost halve the processing time for donations from 60 to 35 days, allowing charities to access the money that has been donated more quickly. Improving the process for charities and PGAs A very commonly heard request was for an improved web presence for Payroll Giving, so the government will create a new home for Payroll Giving, drawing together the best of the existing available information. This will provide the place to go for donors, employers, HR professionals, charities and Payroll Giving Agencies (PGAs). It will also host relevant performance information to increase transparency and improve connectivity between different parties. GOV.UK, the cross government website will host the information and options will also be explored for providing a tool whereby prospective donors can search for their employer and link to the relevant PGA. This should more easily facilitate the start of the donor journey, and as such improve universality. Raising awareness among employers Whilst suggestions were made to make Payroll Giving mandatory for all employers, or to target specific employers, the government do not feel that a forced approach is appropriate given the further demands it could place on businesses. However there is certainly more that
CIPP Policy News Journal
16/04/2014, Page 365 of 519
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