Payroll Giving_

The Diana Award exists to upskill and empower disadvantaged young people to lead change in their communities – but we can’t do this without your help.

WHAT IS PAYROLL GIVING_

Payroll Giving is an easy, tax-efficient way to regularly donate to charity wherein the donation is taken directly from your gross pay. By donating this way, there is no income tax liability on your donation, you will pay less tax on your income, and the charity you donate to doesn’t need to claim Gift Aid related to your donation.

‍

FOR EMPLOYERS_

Benefits of Payroll Giving:

  • Quick, easy, and free* to set up.
  • Enhances Corporate Social Responsibility and boosts public image.
  • Creates an opportunity for corporate Match Funding to encourage employee donations.
  • Demonstrates commitment to causes your employees care about, aiding staff recruitment and boosting morale.
  • Amplifies charity partnerships both internally and externally.

*Payroll Giving Agencies charge an administration fee which can either be taken from employees’ donations or can be paid by the employer.

How to get started:

1_

Contact a Payroll Giving Agency such as Charities Aid Foundation (CAF) or Charitable Giving to act as the host and distributor of payroll donations.

2_

Tell your employees about your Payroll Giving scheme – they can donate to any charity they like, including The Diana Award!

3_

Provide employees with forms provided by the Agency, authorising the deduction from their pay and confirming the charity they want to donate to.

4_

Send completed forms to Agency (unless the employee has sent the form directly to them).

5_

At payroll, deduct the charitable payments before PAYE but after National Insurance contributions are calculated, giving the correct employee tax relief.

6_

That’s it! Your employees can now make regular, easy, tax-efficient gifts to the causes they care about.

FOR EMPLOYERS_

Benefits of Payroll Giving:

  • Quick, easy, and free* to set up.
  • Enhances Corporate Social Responsibility and boosts public image.
  • Creates an opportunity for corporate Match Funding to encourage employee donations.
  • Demonstrates commitment to causes your employees care about, aiding staff recruitment and boosting morale.
  • Amplifies charity partnerships both internally and externally.

*Payroll Giving Agencies charge an administration fee which can either be taken from employees’ donations or can be paid by the employer.

How to get started:

  1. Contact a Payroll Giving Agency such as Charities Aid Foundation (CAF) or Charitable Giving to act as the host and distributor of payroll donations.
  1. Tell your employees about your Payroll Giving scheme – they can donate to any charity they like, including The Diana Award!
  1. Provide employees with forms provided by the Agency, authorising the deduction from their pay and confirming the charity they want to donate to.
  2. Send completed forms to Agency (unless the employee has sent the form directly to them).
  3. At payroll, deduct the charitable payments before PAYE but after National Insurance contributions are calculated, giving the correct employee tax relief.
  4. That’s it! Your employees can now make regular, easy, tax-efficient gifts to the causes they care about.

FOR EMPLOYEES_

Benefits of Payroll Giving:

  • Easy and convenient – the donation is taken straight from your pay, so there is no need to set it up yourself or share bank account details.
  • Tax-efficient – no tax is taken from your donation, and you pay less total tax as a result (see table below).
  • Regularly support a cause you care about.
  • Flexibility – control how much you want to donate, and to which causes.

Without Payroll Giving Donation With Payroll Giving Donation
Gross Pay  £1,000  £1,000 
Deduction Before Tax  -  £10 
Taxable Pay  £1,000  £990 
Income Tax (20%)  £200  £198 
Net Pay  £800  £792 

The tax benefits of Payroll Giving increase as the employer earns more and moves into higher tax bands, see examples below.

Donation Value Cost to 20% Taxpayer Cost to 40% Taxpayer Cost to 45% Taxpayer
£5  £4  £3  £2.75 
£10  £8  £6  £5.50 
£20  £16  £12  £11 
£50  £40  £30  £27.50 
£100  £80  £60  £55 

How to get started:

  1. Check your employer has Payroll Giving set up. If they do, move to step two. If they don’t, please refer them to the steps above.
  1. Request a Payroll Giving form from your employer to ‘opt in’ for Payroll Giving, naming The Diana Award as your chosen charity and the pre-tax amount that would like to donate each from each pay cheque.
  1. That’s it! Your donation will be ongoing until you adjust it through your employer or if you leave the organisation.

If you have any questions about Payroll Giving or how else you can support The Diana Award, email lydia.shepherd@diana-award.org.uk

Our mission is to develop and inspire positive change in the future of young people.

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