The Institute of Fundraising (‘Institute’) is to commission an independent individual or organisation to undertake a full root and branch review of the present structure of Payroll Giving. This is to allow Payroll Giving to reach its full potential.
The Institute considers the Payroll Giving SME Grants Programme to be a success. As a result of the Programme, 198,508 people are able to give through Payroll Giving. This is the direct effect of 3,380 employers making use of the Grants Programme to put a scheme in place. However, this Programme - and the 10 per cent supplement before it - does not address the fundamental issue that more can be achieved through Payroll Giving.
At present, Payroll Giving generates approximately £86 million for charities yet the tax-effective mechanism is only used by 2-3 per cent of those on PAYE. Around 620,000 employees currently participate in Payroll Giving schemes to which approximately 5-7 million people have access.
Broadly, the review will:
- explore the drivers and barriers of Payroll Giving
- identify recommendations to resolving some of these identified barriers and challenges.
Lindsay Boswell, Chief Executive of the Institute of Fundraising, says:
'The Institute of Fundraising believes that, in principle, Payroll Giving is a regular and reliable form of tax-effective giving. The scheme enables employees to give to any UK charity straight from their salary, and to receive immediate tax relief.
'However, despite significant investment in Payroll Giving and activity to support the stakeholders engaged in Payroll Giving, the Institute considers that the mechanism has not reached its full potential.
'It is vital that this independent Payroll Giving review captures the views and opinions of charities, and takes into account changes that have occurred in our sector since the last Payroll Giving review 20 years ago. We intend to fully explore and understand the impact of the mechanism on charities in the UK.'
-ENDS-
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-NOTES TO EDITORS-
- Institute of Fundraising (www.institute-of-fundraising.org.uk) represents fundraisers and fundraising throughout the United Kingdom. It is a membership organisation committed to the highest standards in fundraising management and practice. Members are supported through training, networking, the dissemination of best practice and representation on issues that affect the fundraising environment. The Institute of Fundraising is the largest individual representative body in the voluntary sector with 4500 Individual members and 250 Organisational members.
- The Independent Payroll Giving Review will commence on 1 September 2007 and is to be completed by 31 March 2008. Respondents interested in tendering to undertake the work should contact Megan Pacey, Director of Policy and Campaigns at the Institute of Fundraising, to receive a tender pack. Email or post proposals must be submitted by 5pm on Friday 13th July 2007. Postal proposals should be addressed to:- Megan Pacey, Director of Policy and Campaigns, Institute of Fundraising, Park Place, 12 Lawn Lane, London SW8 1UD.
