Facts

What Is Payroll Giving?

Payroll Giving, launched by HM Government in 1987, is a simple and tax-efficient way for employees to support UK charities. Donations are deducted directly from gross pay—before tax—by the employer's payroll department, allowing employees to give more at no extra cost.

How It Works

  • Employees choose any UK-registered charity or good cause.
  • Contributions are taken from gross salary before tax is applied.
  • Charities outsource donor management to specialist providers, often including admin and mail fulfilment services.

Impact & Insights

  • £2 million+ recovered in recruitment fees for donors who didn't materialise over the last 20 years.
  • £100,000+ redirected to correct beneficiaries due to misallocated or suspended funds.
  • 15-25% average attrition rate in the first year—one of the lowest for committed giving.
  • 5 years is the average donor lifespan through Payroll Giving.

Why It Matters

Payroll Giving offers a reliable, long-term funding stream for charities and empowers employees to make a meaningful impact—automatically, effortlessly, and generously.

The British Heart Foundation have engaged the services of PGMS for a number of years to effectively manage Payroll Giving administration. Providing accurate and timely information to nurture our donors and enabling us to understand our payroll giving universe is a vital service that PGMS excel at. Consolidating reports from the payroll giving agencies and highlighting those donors no longer giving so that we can approach them with another BHF engagement tool is invaluable. Keep up the great work PGMS!

General Facts About Payroll Giving

Payroll Giving is a powerful way for employees to support the causes they care about—directly from their salary. Here's what the latest numbers show:

  • £2 Billion Raised
    Since its launch in 1987, payroll giving has generated over £2 billion in charitable donations.
  • 8,000 Employers Participating
    Thousands of UK employers offer payroll giving as part of their workplace benefits.
  • Over 1 Million Employees Giving
    More than one million employees contribute regularly through the scheme.
  • 40,000+ Charities Supported
    A diverse range of over 40,000 charities benefit from Payroll Giving donations.