What is payroll giving?
Payroll giving is one of the easiest, most cost-effective ways of contributing to charity. You simply choose how much you want to give from your pre-tax monthly pay, which is then given to charity without you having to do a thing!
What’s even better is that because the donation is taken from your gross salary, what you would normally pay in income tax (20%, 40% or 45%, depending on how much you earn) goes to charity instead, making your money go further.
So for example, if you decided you wanted to give £10 a month to Devon Mind, only £8 of your monthly pay would be deducted, with the other £2 coming out of what you would have otherwise paid in income tax on the earnings.
How does it work?
In order to start making donations through a payroll giving scheme, your employer must be signed up to a payroll giving agency (PGA). Ask your boss or HR manager about this. You can find a list of approved PGAs on the HMRC website here.
Once your employer is signed up, you just need to tell them that you want to make a donation through payroll giving, and they will set up the monthly deductions. In case you need it, Devon Mind’s registered charity number is 1181767.
At the end of each month, your payroll/finance department then sends money to their chosen PGA. The agency then arranges for the money to be credited to the charity. Once the gift is up and running, there’s nothing more you will need to!
What are the benefits?
For employees, it’s the easiest way to make regular donations, it’s by far the most cost-effective way to give, and it’s completely flexible.
For employers, it can help boost staff morale and motivation, help with your public profile, and is very cost-effective with little to no setup fees.
For charities, it provides a regular, reliable stream of income, has little to no admin, and opens doors to further partnerships and fundraising.
The setup of a payroll giving scheme is simple, quick, and in many cases free. But the benefits are far-reaching for everyone involved. What are you waiting for?
Pay less, give more. Win-win!
If you were to make a £10 monthly donation using the donate page on our website, it would cost you £10 every month and we would receive £9.66 after payment processing fees (both Stripe and PayPal charge 1.4% + 20p per transaction).
If you instead opted to make that £10 monthly donation via payroll giving, it would cost you just £8 every month and we would receive the full £10 — with the extra £2 coming from the amount you would have otherwise paid in tax.
That means that after 12 months of regular giving through a payroll giving scheme, you would have saved £24 and we would have received £4.08 more than if you had made the donation on our website. That’s a win-win!