gbgbdb PAYROLL GIVING - Cancer Research UK Payroll Giving is a simple and tax-e¯¬’ cient scheme that

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    An Employer’s Guide

    26056 CRUK Employers Guide 24pp.indd 1 12/04/2016 09:56

  • TABLE OF CONTENTS Introduction 2

    What is Payroll Giving? 3

    How does Payroll Giving work? 3

    What are the Benefi ts? 4

    How to set up a Payroll Giving Scheme 6

    Get recognition for your scheme 8

    Running a Payroll Giving Promotion 10

    Case study 13

    How CRUK can support you 15

    FAQ 16

    Further Information and Contacts 20


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  • WHAT IS PAYROLL GIVING? Payroll Giving is a simple and tax-effi cient scheme that allows your employees to regularly donate to Cancer Research UK (and other charities) directly from their gross salary. Whatever the size of your business, Payroll Giving is quick and easy to put in place, and helps raise millions of pounds a year for great causes.

    HOW DOES PAYROLL GIVING WORK? Setting up and running a Payroll Giving promotion scheme is quick and simple. Once you have your scheme in place, your employees will be able to sign up to start donating. Then, each payday, their chosen donation amount is taken directly out of their gross salary by your company’s payroll department. The donation is taken after National Insurance is deducted, but before tax. This means that their donation will cost them up to 40% less through the tax break.

    All employees’ donations are sent directly to a Payroll Giving Agency (PGA) who will handle the transfer of the funds to Cancer Research UK or any other charity they have chosen to support.

    Donor Pledge

    Cost to standard rate tax payer (20%)

    Cost to higher rate tax payer (40%)










    This guide will provide you with everything you need to know to set up and run a successful Payroll Giving scheme, including tips on how to promote Payroll Giving in your business and how to get recognition for your scheme.


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  • WHAT ARE THE BENEFITS? Corporate Social Responsibility is crucial whatever the size of your business, which is why more employers than ever are implementing Payroll Giving Schemes. Below are very real business benefi ts to off ering Payroll Giving to your employees.



    RECOGNITION The Quality Mark Scheme and National Payroll Giving Excellence Awards recognise your business’ commitment to good causes through Payroll Giving (see page 8).

    LOW EFFORT Virtually no set up and running costs and minimal administrative requirements since all modern payroll systems are equipped to process donations.

    HIGH REWARD You could soft credit the projected value of an employee’s donation based on the average donation duration, which is 5 years. The projected long-term value of an employee’s £5 monthly pledge, for example, would be £300.

    EASY REPORTING CRUK is able to provide you with the monthly value of your employees’ payroll giving donations to the charity to monitor and measure your organisation’s contribution.






    It’s the only way to give that allows full tax relief on donations.

    Donors have full control over their donation and can easily stop or change their gift at any time.

    Running marathons and baking cakes isn’t for everyone. Payroll Giving is ideal for busy people who prefer something quick and easy.

    No banks details are given out to charities and donors can choose how their chosen charity contacts them.




    Regular and reliable income allows charities to plan ahead and budget for the future.

    Since donors benefi t from tax-relief, many are encouraged to give a little more than they might otherwise.

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  • HOW TO SET UP A PAYROLL GIVING SCHEME 1. GET EVERYONE ON BOARD By getting the support of senior management, payroll and human

    resources, the process will be simple. Let them know how great Payroll Giving is, and the benefits of giving regularly to Cancer Research UK.

    2. SIGN UP WITH A PAYROLL GIVING AGENCY If you haven’t already, sign up with a PGA – they are the facilitators

    of Payroll Giving, and distribute the funds that your employees donate. Since donations are made through gross pay, HMRC need an audit trail to ensure money is going to the right places. So PGAs are vital!

    3. PROMOTE THE SCHEME TO STAFF Promoting the scheme is really important as many of your

    employees may have never heard of Payroll Giving. Promotions can be great fun and help build staff morale. See page 10 for ideas on how to do this effectively.

    4. EMPLOYEE SIGN UP Your staff can sign up to Payroll Giving through a Professional

    Fundraising Organisation (see page 20) or by filling out the simple form on our website

    5. DONATIONS BEGIN Now that you’ve got the Payroll Giving scheme in place, and your

    employees are all on board, your payroll team can start making the deductions each payday.


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    The Payroll Giving Quality Mark celebrates the achievements of employers who have adopted and successfully promoted Payroll Giving schemes in their workplaces. Employers who receive a Quality Mark will receive a certificate and Quality Mark logo, which can be used on company literature in recognition and celebration of their achievement.

    Every employer that offers a Payroll Giving scheme to their employees is eligible to receive a Quality Mark, with Bronze, Silver, Gold and Platinum Quality Marks available for employers that achieve certain benchmarks (see opposite page).

    HOW TO APPLY FOR A QUALITY MARK Your Payroll Giving Agency will monitor the employee participation rates you have achieved and will allocate a

    Payroll Giving Quality Mark in line with the above criteria.

    The deadline for Quality Mark applications is usually in April, with certificates distributed in June.

    THE NATIONAL PAYROLL GIVING EXCELLENCE AWARDS The National Payroll Giving Excellence Awards are designed to showcase the best Payroll Giving schemes in the UK, and are awarded in an annual Payroll Giving Excellence Award ceremony.

    Any employer who has achieved a Quality Mark in the preceding year is eligible to submit an entry for an award.

    For more information, or to submit an application for an Excellence Award, contact your PGA or visit the Payroll Giving Centre website:


    - Either achieved an overall employee sign-up to Payroll Giving of 20%, or increased employee take-up from the previous year by a minimum of 10%

    - Increased existing donations (through demonstrable promotion) by a minimum of 10%

    - Matched employee contributions by a minimum of 10%

    Employers must have achieved and held the Gold Quality Mark Award for at least one year prior to applying for a Platinum Quality Mark Award.


    Awarded to employers that achieve 10% employee participation rate in Payroll Giving and demonstrate some level of employer support for the scheme.

    Employer support means that the employer must either pay the PGA administration charge, match donations or demonstrate that they have carried out an active promotion of Payroll Giving during the previous year.


    Awarded to employers that achieve 5% employee participation rate in Payroll Giving.


    Awarded to employers that achieve 1% employee participation rate in Payroll Giving.

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  • RUNNING A PAYROLL GIVING PROMOTION Check out our four top tips for making the most of your Payroll Giving scheme

    Whether you’re using a Professional Fundraising Organisation or running a promotion in-house, promoting your Payroll Giving scheme is essential in achieving good participation rates. Here are our top four recommendations for making the most of your scheme.


    - Having a fundraiser go desk to desk to sign people up is the most effective way to get people on board with Payroll Giving. This service is offered by Professional Fundraising Organisations (PFOs), and is free for you as an employer.

    - Use emails and the company intranet to enable staff to sign up instantly on a simple form. Most PFOs are able to setup a bespoke page for you. Alternatively, staff can sign up to give to Cancer Research UK on our website:

    - Ask your PGA to provide you with a simple form which you can give out to staff. To sign up, they simply fill out the form and return it to your payroll department.


    - Set a goal to challenge employees to achieve new levels of