A guide to… Charity

UK businesses are being encouraged to set up payroll giving schemes, meaning that employees don’t have to dig so deep to give to their favourite charities.

In the pre-Budget report last December, Gordon Brown announced that the Government would provide a grant of up to £500 to companies (with less than 500 employees) who were setting up a payroll giving scheme for the first time.

As an added incentive, the new grants programme will match the first £10 donated by each employee, every month, for a period of six months. Harley Davidson has recently signed up to the scheme.

Donating through a payroll giving scheme means that the money is taken from gross pay, rather than net. For example, an individual may want to donate £10 a month to a charity. Through payroll giving the charity would receive £10 but the individual would have given £7.80, assuming they pay standard rate tax.

‘Payroll giving is something every organisation can get involved in, whatever their size. I hope this scheme will encourage more small and medium-sized businesses to get on board,’ commented Fiona Mactaggart, Home Office Minister.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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