By Emma Kane
There are numerous ways that a company can create winning partnerships with registered charities that are win win for both parties. You can support causes that align with your corporate values, provide much needed funds to charities, and provide great opportunities for your employees. Here are just a few ways:
Payroll Giving or Workplace Giving as it is also known, is a great way for your employees to donate money to a charity without paying tax on it. The employer sets up and runs a Payroll Giving scheme and the sums donated by the employee are paid through PAYE from their wages or pension to a Payroll Giving Agency (details via HMRC); the Agency passes them to the charity. The amount of tax relief the employee gets depends on the rate of tax they pay. Each time the payroll is run, the donation is taken before tax but after National Insurance. The company decides whether they pay the fee charged by the Agency (c.4%) or if it gets deducted from the donation sent to the charity. The Agency sends the donations to the chosen charity. Charities can’t claim Gift Aid on Payroll Giving donations but the employee is providing them with a regular income, it allows them to plan and budget for the future and there is less admin for the charities and they can get on with supporting their beneficiaries. An employee can give to any organisation recognised as charitable by HMRC.
An employee can also open a CAF Charity Account and can then make regular donations into the account from which they can make one-off donations to charities, donate anonymously and set up regular donations.
Some charities will welcome volunteers and companies benefit by providing opportunities for their people to improve their communications skills, team build and make a real difference to organisations that align with their corporate values.
Time to Do Good Deeds
Some companies give a day a year to do good deeds and others give a day a month – whichever works for you, it is a great way to support charities by enabling your people to support great causes.
Choose a Charity of the Year for Partnership
Get behind a charity by making it your Charity of the Year and find year-round opportunities to motivate your people and engage with customers and suppliers.
Employee Fundraising and Matched Funding
Whether it is bespoke events that match your company’s needs or individual endeavours, consider matching funds raised by your employees potentially capped at a certain level. Win win because your employees and the underlying charities feel truly supported and appreciated.
If you simply want to make a donation, remember, donations can be offset against your company’s corporation tax.
Gifts in Kind
Could you offer a venue or services for free or maybe some office equipment or skills training – this can be a wonderful way to support a charity.
Retailers can use the Pennies scheme to make micro-donations. Pennies partners with retailers to support charities in need. This is done across the retailers’ channels in-store, online, app, and in emerging payments. Customers are prompted by the card machine or at online checkout to donate a few pence. Pennies then distributes the funds raised to the registered charities across the UK and Ireland.
These are just a few of the ways that companies can collaborate with their employees to support charities and reinforce key corporate values in tax efficient ways that benefit everyone concerned.