The number of employees who give money to charity through payroll has fallen by 30,000, according to research from accountancy firm Wilkins Kennedy.
In the past 12 months, the number of employees taking part in payroll giving fell from 754,000 to 724,000. This has previously peaked in 2007/08 with 758,000 members.
Although the number of people making donations through payroll giving has fallen, the total amount of money donated through the scheme has increased, rising from £104 million to £106 million in the last 12 months.
John Howard, partner and head of charity and not-for-profit at Wilkins Kennedy, said: “The decline in participation in the payroll-giving scheme is a major concern.
“A loss of 30,000 donors is a serious worry for charities as donations made through payroll giving are very high-margin donations with virtually no administration costs. This comes at a time when charities are feeling the strain from the government’s cuts to local authority spending. At the same time, the recession has increased the workload of many charities.
“Making it easier for an employee to transfer their donation when they move to another job would help reduce this scheme’s attrition rate. Donations are lost when an individual moves to an [organisation] that does not offer the scheme, or if it is offered, the employee has to go through†the hassle of setting up their payment again through their new employer.”
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