The government has published proposals that aim to make it easier for employers to encourage charitable donations using payroll-giving schemes.
Following a consultation that was launched in January, the government is to almost halve the processing time for donations, from 60 to 35 days, which will allow charities to access the money that has been donated more quickly.
It will also create improved web pages that will provide an online presence for employers, employees, charities and payroll-giving organisations.
The government will host a series of working groups, involving charities, payroll-giving organisations and other stakeholders, to help consider further improvements to the payroll-giving process.
Payroll giving enables individuals to donate money to charity directly from their salary via their employer, meaning that their donation is free from income tax.
Sajid Javid, economic secretary, said: “The government is strongly supportive of charities and has introduced a number of measures to encourage charitable giving.
“Payroll giving provides a unique way for employers to encourage and champion donations, and the government is committed to increasing the amounts raised through payroll giving.
Nick Hurd, minister of the Cabinet Office, added: “These are useful steps in making payroll giving work better for donors, employers and charities.
“They are part of our broader strategy to make it easier and more compelling to give.”
Overall, we are again deeply disappointed that the government has missed a vital opportunity to make the changes needed to payroll giving.
We are pleased there is continued support from the ministers and their departments, but they really need to understand the actual issues, rather than the perceptions that are held around the scheme
We were very sceptical when the consultation was first launched and our worries now appear to be correct.
The announcement in the reduction of days for processing donations will make no difference. Overall, 80% of donations flow through the current system within a month and the delays caused around the other 20% are due to employers not understanding their obligations with administrating processes. There is no mention of how the government plans to deal with this. We made this very clear in our consultation response, and are shocked that this was not understood by government.
If the government have taken note of the portal idea Workplace Giving UK first put forward to them between December 2011 and February 2012 we think this is at least a step in the right direction for the scheme, but this may only be another online set of information that already exists rather than an interactive and engaging web presence that allows any employee to find out if their employer actually offers the scheme. Furthermore, there was no recommendation covering the modernisation of the scheme to encompass new ways of giving through digital media.
We continue to be concerned that government have not considered the ‘employee journey’ (How do I know if my employer even offers a scheme?), understood why some employer schemes are successful and what motivates an employee and employer to engage with the scheme. During the past five years, our Geared for Giving Campaign has shown how the scheme needs to be marketed to a business audience and in turn overall annual monies to charity via payroll giving has increased by £20 million.
It is also incredible that the government fails to mention the work of professional fundraising organisations (PFO), of which we are one, within their response, as we are the key lynch pin between charity, employee, employer and PGA and the driving force for the thousands of employees signing up to the scheme each year.
We hope to work with government on positive changes to the scheme, but will continue to challenge them on these very disappointing recommendations
Overall we are again deeply disappointed that the Government has missed a vital opportunity to make the changes needed to Payroll Giving.
We are pleased there is continued support from the Ministers and their departments, but they really need to understand the actual issues, rather than the perceptions that are held around the scheme
We were very sceptical when the Consultation was first launched and our worries now appear to be correct.
The announcement in the reduction of days for processing donations will make no difference, overall 80% of donations flow through the current system within a month and the delays caused around the other 20% are due to employers not understanding their obligations with administrating processes. There is no mention of how the Government plans to deal with this. We made this very clear in our Consultation response, and are shocked that this was not understood by Government.
If the Government have taken note of the portal idea Workplace Giving UK first put forward to them between December 2011 and February 2012 we think this is at least a step in the right direction for the scheme, but this may only be another online set of information that already exists rather than an interactive and engaging web presence that allows any employee to find out if their employer actually offers the scheme. Furthermore there was no recommendation covering the modernisation of the scheme to encompass new ways of giving through digital media.
We continue to be concerned that Government have not considered the ‘employee journey’ (How do I know if my employer even offers a scheme?), understood why some employer schemes are successful and what motivates an employee and employer to engage with the scheme. During the past five years, our Geared for Giving Campaign (www.gearedforgiving.com) has shown how the scheme needs to be marketed to a business audience and in turn overall annual monies to charity via Payroll Giving has increased by £20 million.
It is also incredible that the Government fails to mention the work of Professional Fundraising Organisation, of which we are one, within their response, as we are the key lynch pin between charity, employee, employer and PGA and the driving force for the thousands of employees signing up to the scheme each year.
We hope to work with Government on positive changes to the scheme, but will continue to challenge them on these very disappointing recommendations
The Treasury has demonstrated that it’s listening to charities about the payroll giving system and the need for reform.
Our payroll giving donations total more than £650,000 each year ––enough to fund 10 heart failure nurses for a year, who could go on to help around 10,000 patients.These welcome reforms will help us to generate even more funds for the fight against coronary heart disease, the UK’s single biggest killer.
Governance, leadership and promotion of the scheme are key to the ongoing development of this vital fundraising tool and we’re going to be working hard with all stakeholders to ensure more people can give as they earn, without any barriers.