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Payroll giving could be worth £1bn extra

By Paul Jump, Third Sector Online, 30 April 2007

Charities could be raising up to £1bn a year more if British workers were better informed about payroll giving, according to survey by an Oxfam and YouGov.

The online survey of 2,327 people found that one third of respondents would donate an average of £9.60 a month through their salary if they knew how. This would add up to £77m per month, or £927m per year.

Tina Steele, payroll giving project manager at the Institute of Fundraising said she thought the figures sounded about right.

“Oxfam don’t normally get these things wrong,” she said. “If you talk to most people about payroll giving as an option they really like it because they don’t have to do anything. It is popular with people who wouldn’t necessarily give any other way.”

A Charities Aid Foundation spokeswoman said it was “possible” that people really would give the £9.60 figure quoted in the survey if they were asked.

"Most people simply don’t know about payroll giving,” she said. “We would like to see far more companies promoting it to their workforce.”

Charities are worried about their income from tax-efficient sources following the announcement in the chancellor’s March budget of a 2p cut in income tax. The Charities Aid Foundation estimated that the cut could cost charities more than £70m each year in lost Gift Aid revenue.