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.