Payroll Giving
For Employees

You work hard for your money. Now, you can make your money work hard for change.

Make tax-free and hassle-free donations to any charity, directly from your salary. By donating to your favourite charities through payroll giving, it'll cost you less and your charities will receive more - we call this the Payroll Giving Bonus. It's simple, it's easy and it's impactful.

Change the world while you’re at work.

There are 1000s of charities that are working hard for a better world.
By donating directly to them from your salary, pre-tax, your donations will
go even further, helping charities to create real impact through their work.

You work hard for your money. Now, you can make your money work hard for change.

You're in good company
We're trusted by some of the world's most impactful charities
Why donate via payroll?

Donations Work Harder

Don’t let the tax man get hold of your hard-earned cash – give it to charity instead. Your donations are deducted before income tax is calculated, so you pay less to the tax man and your charities receive more.

Create Vital Impact

Charities rely on regular and reliable payroll giving donations. They are much more valuable than a Gift Aid donation and they help charities plan better and create a greater impact.

Support Any Charity

We have a list of amazing charities on our website but you can support any UK-registered charity you wish. If you’re not sure who you want to support, you can click here to discover some great charities.

Ultimate Flexibility

Support as many different charities as you like, and donate different amounts to each of them. From one-off donations to regular donations every pay-day, you can choose how often and how much you want to give.

Simple, Quick & Easy

Sign up in literally 1 minute and log in any time to see your donations and make any changes. We’ll update your employer so they can take care of the admin of donating for you.

No Direct Debits or Bank Details

Your donations are taken directly from your gross pay and distributed to your chosen charities on your behalf. So you don’t need to manage any direct debits or supply any bank or card details.

Here's how it works...

1

Click the Sign Up button to select your charities and your donation amount.

2

We’ll tell your employer how much you want to donate and they’ll deduct it from your gross pay. You’ll see the deduction on your payslip.

3

Your employer sends the donations to us and we send them directly to your chosen charities. 100% of your donations go to your charities.

4

Log in any time to view your donations or make any changes. Your data, preferences and personal data are completely confidential and totally secure.

Frequently Asked Questions

Payroll Giving is a tax-efficient employee benefit scheme that allows charitable donations to be deducted from employees’ gross pay, before their income tax is calculated. This means that all Payroll Giving donations are completely tax-free. Employees will pay less income tax to the tax man, and instead their chosen charities receive the full gross amount, making all donations work harder. We call this the “payroll giving bonus”.

It is the simplest, most efficient and most impactful way for employees of any business to donate to their chosen charities directly from their salary, tax-free and hassle-free, making their money work hard to create change.

There are so many great benefits of Payroll Giving.

Payroll Giving for Employers:

  • It’s super-easy to set up and use
  • It’s fully secure and GDPR compliant
  • We help you promote it to your employees
  • It increases employee engagement
  • It improves your corporate social responsibility objectives

Payroll Giving for Charities:

  • It provides regular and reliable income stream
  • You will receive 100% of all donations
  • It’s better than a Gift Aid donation
  • You can access new hard-to-reach supporters
  • Build new long-lasting supporter relationships
  • Create your own charity landing page

Payroll Giving for Employees:

  • Your donations work harder due to the “Payroll Giving Bonus”
  • You can create greater impact from your support
  • You can support any UK-registered charity
  • Support as many charities as you like, with flexible donation amounts
  • Super simple, quick and easy to set up
  • You can log in any time to make any changes
  • We take care of it all for you, so you don’t need to manage direct debits or enter bank details.

That is a great question, and one that we at GoodPAYE are on a mission to solve. In order to make charitable donations via payroll giving, you need to be an employee at a company that offers a Payroll Giving scheme.

Unfortunately, the majority of employers in the UK do not offer a Payroll Giving scheme to their employees, and so most of the working population in the UK simply do not know about this extremely easy and impactful way of charitable giving.

Every employer and employee we speak to agrees that Payroll Giving is the best way to give and they are surprised that they had never previously heard about it. GoodPAYE was set up to change this. Not only are we spreading the word, but we’ve also made it completely free and super easy for employers to start offering it to their employees, and even easier for employees to set up and mange their payroll giving donations, so that more people can make their charitable donations via Payroll Giving.

When you donate to charity directly, e.g. via Direct Debit, you may have seen the option to tick the “Gift Aid” box. If you are a UK tax payer, ticking the box will enable the charity to retrospectively claim an additional 25% of your donation from HMRC. For example:

You give £10 per month by direct debit and tick the gift aid box. £10 gets taken from your bank and given to charity. A few months later, the charity will claim an additional £2.50 (25% of £10) from HMRC. The £10 that get’s taken from your bank is taken from your net take-home pay, i.e. the salary that you actually receive from your employer after all the income tax is calculated and deducted.

However, with Payroll Giving, your donations are deducted from your gross pay, i.e. before income tax is calculated. This means that you pay less income tax to HMRC, and instead your charity will receive it. For example:

You’re in the 20% income tax band and you give £12.50 to charity via payroll giving. Your gross salary is reduced by £12.50 and the charity receives that £12.50 without needing to claim anything. You will pay less income tax because your gross salary is now £12.50 less. And therefore your net take-home pay (the amount you actually receive in the bank from your employer) is only reduced by £10.

And whereas Gift Aid is capped at 25%, there is no cap on payroll giving donations. So if you’re in the 40% or 45% income tax rate band, the benefit is even greater! For example:

40% Income Tax Band: you could give £16.66 to charity from your gross pay and it will only reduce your net take-home pay by £10.

45% Income Tax Band: you could give £18.18 to charity from your gross pay and it will only reduce your net take-home pay by £10.

 

Donating to charity via Payroll Giving is the most tax-efficient way to donate to charity. All payroll giving donations are deducted before income tax is calculated, which means that employees will pay less income tax to the tax man. Instead, their nominated charities will receive the full pre-tax amount. The higher your income tax band, the greater the impact. Here’s an example:

If you want to give £10 of your take-home earnings to charity:

  • 20% Income Tax Band: you could give £12.50 to charity and it will only cost you £10
  • 40% Income Tax Band: you could give £16.66 to charity and it will only cost you £10
  • 45% Income Tax Band: you could give £18.18 to charity and it will only cost you £10

The difference between the £10 cost to you and the £2.50 / £6.66 / £8.18 extra that the charity will receive is the amount that you would otherwise have paid in income tax to the tax man. We call this the “payroll giving bonus”.

The more you give, the less income tax you pay and the more your charities will receive. Finally, your donations can work as hard as you do.

Payroll Giving Agency (PGA)

Every employer that offers a Payroll Giving scheme to their employees must have a contract with a Payroll Giving Agency (PGA). The PGA takes care of the distribution of payroll giving donations to employees’ chosen charities. You can think of a PGA a bit like PayPal or Stripe – they sit in between the employers and the charities.

Once an employer has run their payroll and deducted the charitable donations from their employees’ gross pay, they will transfer their employee’s donations to their PGA who will distribute the donations to the relevant charities. All PGAs must be approved by HMRC, and some charge an administration fee.

 

Professional Fundraising Organisation (PFO)

Employers and Charities will often work with a Professional Fundraising Organisation (PFO) to help them promote payroll giving and generate more payroll giving supporters. PFOs provide them with marketing and fundraising services, dedicated to payroll giving.

PFOs will run campaigns and promotions for employers, either digitally or face-to-face, to help explain the benefits of payroll giving to their employees, help their employees discover some of the amazing charities that they could support, and help employees sign up to their employer’s payroll giving scheme.

Charities who work with PFOs benefit from the proactive promotion, additional exposure and bespoke campaigns that PFOs offer them, increasing the charities exposure to new audiences, acquiring new supporters and generating additional regular and reliable income via payroll giving.

 

Is GoodPAYE a PFO or a PGA?

GoodPAYE is a Professional Fundraising Organisation (PFO). However, we are proud to have partnered and fully integrated with PayCaptain.org, an HMRC-approved Payroll Giving Agency (PGA). Our seamless integration means that we can provide an all-in-one Payroll Giving Solution for Employers, making it much easier for employers to set up and run a Payroll Giving Scheme for their employees.

GoodPAYE is a Professional Fundraising Organisation (PFO). However, we are proud to have partnered and fully integrated with PayCaptain.org, an HMRC-approved Payroll Giving Agency (PGA).

Our seamless integration means that we can provide an all-in-one Payroll Giving Solution for Employers, Employees and Charities. Historically, the separation of PFOs and PGAs has created confusion and complexity, making Payroll Giving a clunky and costly process for everyone.

However with GoodPAYE and PayCaptain.org, our integrated Payroll Giving Solution creates a much simpler and seamless experience, with no fees for employers and 100% of employee donations going to their chosen charities. We use the latest technology and automations to drive innovation in charitable giving, improve an outdated and broken payroll giving process, and make Payroll Giving more accessible and impactful for Employers, Employees and Charities.

National Payroll Week was established in the UK by the CIPP in 1998 to celebrate the payroll profession and to give it the recognition it deserves. The week is designed to demonstrate the impact the payroll industry has in the UK through the collection of income tax and National Insurance; especially when you consider the £249 billion paid to the government through income tax and national insurance contributions.

Ready to make an impact?

Sign Up Now to start making charitable donations that work as hard as you do.