City Philanthropy

A Wealth of Opportunity

Payroll Giving

Payroll Giving is a flexible scheme which allows anyone who pays UK income tax to give regularly and on a tax free basis to the charities and good causes of their choice. 

Payroll Giving donations are deducted before tax so each £1 you give will only cost you 80p, and if you're a higher rate tax payer it will only cost you 60p.

Payroll Giving (also known as Give As You Earn or workplace giving) is a valuable, long term source of revenue, providing regular income to help charities budget and plan ahead more effectively. Employees can choose to support any charity of their choice with a regular donation direct from their pay.

Its cheaper because its tax free - for example, a donation of £5 per month costs the basic rate tax payer £4.00 (the taxman pays the rest!)

For higher rate taxpayers it is the only way to pass on your 40% or 50% tax to charities. Only 28% can be recouped via other ways of giving.

In 2012/13 £155 million was received and distributed by the Payroll Giving Agencies to UK charities from employees donating from their pre-tax pay.

An increasing number of companies offer this scheme, and some will match the donations of their staff. This could significantly increase the value of the gift. Even without that incentive, payroll giving is for most people in regular employment, receiving director’s fees or a company pension, the simplest way to give tax-efficiently.

Whether you are a business wanting to initiate a company scheme or an employee wanting to give directly and tax efficiently, you can find out more at the following sites:

Payroll Giving in Action

GOV.UK: Payroll Giving

GOV.UK: Payroll giving - approved agencies

Payroll Giving Centre

Workplace Giving UK

Association of Payroll Giving Organisations

If you feel Payroll giving is the right way for you to give then visit our Charity Chooser database to find an organisation to support.