gbgbdb PAYROLL GIVING - Cancer Research UK · Payroll Giving is a simple and tax-eﬃ cient scheme that allows your employees to regularly donate to Cancer Research UK (and other

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WE WILL BEAT CANCER SOONER

PAYROLL GIVINGPAYROLL

An Employer’s Guide

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

TABLE OF CONTENTSIntroduction 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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26056 CRUK Employers Guide 24pp.indd 2-3 12/04/2016 09:56

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.

DonorPledge

Cost to standard rate tax payer (20%)

Cost to higher rate tax payer (40%)

£4

£8

£12

£3

£6

£9

£5

£10

£15

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.

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FOR YOUR COMPANY

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.

FOR YOUR EMPLOYEES

GOOD VALUE

MORE CONTROL

GREAT FOR BUSY PEOPLE

DONOR PRIVACY

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.

FOR CHARITIES

REGULAR INCOME

HIGHER GIFTS

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.


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 www.CRUK.org/payroll-giving

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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GET RECOGNITION FOR YOUR SCHEMEPAYROLL GIVING QUALITY MARK

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 MARKYour 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 AWARDSThe 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: www.payrollgivingawards.co.uk

PLATINUM QUALITY MARK AWARD

- 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.

GOLD 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.

SILVER QUALITY MARK AWARD

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

BRONZE QUALITY MARK AWARD

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


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.

1. MAKE IT EASY TO SIGN UP

- 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: www.CRUK.org/payroll-giving

- 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.

2. INCENTIVISE YOUR WORKFORCE

- Set a goal to challenge employees to achieve new levels of participation – publish this goal and keep updating it as the promotion continues to keep staff motivated.

- Thank your employees and celebrate contributions. Use your success stories as a positive PR opportunity.

- Offer your employees something in exchange for signing up –sweets, badges, a coffee, a dress down day etc.

- Organise a free draw for everyone filling in a Payroll Giving form during the promotion – an extra day’s holiday is always popular.

- Consider matching your employees’ donations and, if you decide to do so, publicise this to your employees as it can be a powerful incentive.

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3. CAPITALISE ON THE PEER EFFECT

- Recruit a committed group of staff volunteers. They can be invaluable in promoting schemes to their peers.

- Get your senior managers to set an example and be the fi rst to sign up publicly.

- Foster some healthy competition by publishing league tables based on department/division/location showing how many people have signed up.

4. GET THE TIMING RIGHT

- Pick a time when levels of motivation are likely to be high, before holidays, after ‘good news’ announcements and pay rises.

- Put reminders about payroll giving in payslips.

- Run regular promotions to maintain awareness and continue to recruit new donors throughout the year.

- Enclose promotional materials in induction packs toinform new staff about the scheme.

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To show you what a Payroll Giving promotion could look like, here’s a case study of what we did here at Cancer Research UK to promote our Payroll Giving scheme, nearly doubling uptake and earning a Silver Payroll Giving Quality Mark (see page 8 for details) along the way.

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STAKEHOLDERS:

First of all of, we got the buy in of key stakeholders: Payroll, Internal Comms and HR. We also got a PFO to come help recruit in person.

THEME:

Setting a theme tied together all the activity going on across the week. Since we work in charity, we decided on the theme “Put your money where your mouth is”.

INCENTIVES:

The main incentive was entry into a raffl e with the chance of winning one of three extra days of annual leave. To sweeten the deal (literally!) we also gave a free doughnut to the fi rst 120 people to sign up.

MARKETING MATERIALS:

• Flyers in Payslips

• Stand in canteen – Fundraisers set up a stand in the canteen over lunch to chat to staff about the scheme.

• Staff e-newsletter – Our newsletter featured an article about Payroll Giving with a link to the online sign up form.

• Posters

SIGN UP:

1. PFO fundraisers signed people up in person in the head offi ce

2. Online sign up form

3. Downloadable form on the intranet

3 KEYS TO SUCCESS:

• Good support from senior management and each key stakeholder

• Easy and convenient ways for people to sign up

• Compelling incentives

CASE STUDY


HOW CRUK CAN SUPPORT YOUOne of the features of Payroll Giving is that the individual can choose which charity they would like to support. If, however, you would like to run a Payroll Giving promotion to encourage employees to support Cancer Research UK specifi cally, you could add an extra incentive, such as a free give-away or an extra chance to win a raffl e prize. We can also off er you the following support:

- Our Employee’s Guide to Payroll Giving is a great tool which you can request or download online at www.cruk.org/payroll-giving

- We can put you in contact with recommended PGAs and PFOs who will make setting up and running a scheme pain-free and eff ective

- Our comms package includes a suite of soft materials which can be used in promotion communications. This includes:

- Draft email from CEO to send round to all staff

- Explanation of Payroll Giving for your intranet

- Employee FAQ

- Editable promotion posters

- Our Payroll Giving team are available to advise you on your promotion and answer any questions you may have.

Contact us at [email protected]

After developing osteosarcoma, a type of bone cancer, and losing his leg, 13-year old Ben O’Brien from Sheffi eld has set his sights on the 2020 Paralympics. Ben’s mum Dawn Sowden is hugely grateful to everyone who supports research, which she says saved her son’s life.

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BEN’S STORY


FAQHOW DO I CHOOSE A PGA?There are a number of HMRC registered PGAs to choose from. A list of PGAs is available at the end of this guide. Once you have chosen a PGA, you will be able to download a copy of their registration agreement from their website or simply call them and they will send one to you. All you have to do is fill it in and return it to them.

WHAT ROLE WILL MY PAYROLL DEPARTMENT TAKE?Your payroll team will play an integral part of the scheme, with minimal effort. The great thing is, all modern payroll systems can implement Payroll Giving easily, usually through a simple ‘tick box’ option. Once your employees have signed up, either via PFO or through our online form (www.cruk.org/payroll-giving) your payroll department will then deduct the donations each payday (whether weekly or monthly). The total sum of donations from all employees will then be sent to your PGA. The PGAs will be on hand throughout the process to help answer any questions your payroll department may have.

HOW ARE THE FUNDS TRANSFERRED VIA PGAS?All funds are sent to your PGA by your payroll department and these are then transferred to your chosen charity(ies). They take a small admin fee – usually around 4% - a tiny fraction when you consider the amount of tax HMRC would take. The donation deductions will then appear on employees’ payslips. Your PGA will also report back to you so that you can keep track of total employee donations.

HOW MUCH WILL THE SCHEME COST TO SET UP?Most employers say there are no identifiable costs in setting up a Payroll Giving scheme. Those that do attribute an expense usually say it’s around £100 (including staff time).

WHAT IS ‘MATCHED GIVING’?Matched giving is a powerful and popular way of encouraging employees to sign up to Payroll Giving. Companies can decide whether they would like to match an employee’s donation (as much, or as little as you wish). The matched amount is then added to the employee donations, giving employees an incentive to start Payroll Giving and make their charitable donations go further.

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HOW FLEXIBLE IS PAYROLL GIVING FOR MY EMPLOYEES?The scheme is as flexible as your employees want it to be. They can increase, decrease, start or stop their donations at any time. Another benefit of the scheme is that donations can be made to one or more charities – all they will need to do is specify which charities they would like their donations to go to.

WHO ARE PFOS, AND HOW CAN THEY HELP?Professional Fundraising Organisations (PFOs) specialise in workplace fundraising, sending out teams of trained fundraisers who visit organisations and tell staff about Payroll Giving, answer questions and carry out the sign-up process. PFOs are paid by charities for recruiting donors and charge no fees to the employer. A list of PFOs is available in the ‘Further information and contacts’ section on the last page of this guide.

WHY DO WE NEED TO SIGN A PAYROLL GIVING CONTRACT?A contractual agreement will secure your working relationship with a PGA and provides HMRC with the necessary audit trail for pre-tax payroll deductions. The contract authorises the employer to commence deductions.

HOW MUCH DO PGAS CHARGE?Most PGAs make a small administration charge (0-4%) which is deducted from the employee’s donation before being sent on to the charities. A growing number of employers choose to pay the administration charge on behalf of their employees to ensure that their full donation is received by the charity.

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FURTHER INFORMATION AND CONTACTSCancer Research UK also provides a Payroll Giving Guide for employees, which is available on our website: www.cruk.org./payroll-giving

The Payroll Giving Centre is a comprehensive online information centre which provides free guidance materials, promotional literature and useful links to help you make the most of Payroll Giving: www.payrollgivingcentre.org.uk

PAYROLL GIVING AGENCIES (PGAs):Charities Aid Foundation (CAF)

03000 123 000

www.cafonline.org

Charitable Giving

01822 611 180

[email protected]

www.charitablegiving.co.k

Charities Trust

0151 286 5129

[email protected]

www.charitiestrust.org

PROFESSIONAL FUNDRAISING ORGANISATIONS (PFOs):Hands on Payroll Giving

01433 612 882

[email protected]

www.handsonpayrollgiving.co.uk

Payroll Giving in Action

01271 326 131

[email protected]

www.payrollgiving.co.uk

StC Payroll Giving

03000123 800

[email protected]

www.stcpayrollgiving.co.uk

The Payroll Giving Team

[email protected]

www.thepayrollgivingteam.co.uk

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gbgbdb PAYROLL GIVING - Cancer Research UK · Payroll Giving is a simple and tax-eﬃ cient scheme that allows your employees to regularly donate to Cancer Research UK (and other