Payroll-giving grants scheme fails to pull in donors

Half of the firms that signed up to an £8.3m scheme to promote payroll giving failed to get more than one donor, according to analysis by a payroll-giving agency that took part in the project.

Small and medium-sized employers that signed up at least one donor through the scheme were eligible to claim £300. But South West Charitable Giving found that of the 784 businesses it signed contracts with, 166 failed to find a donor by the deadline of 30 June this year and didn't qualify for the grant. Of the remaining 622 businesses, 36 per cent produced only one donor.

The Institute of Fundraising received £8.3m from the Home Office to promote payroll giving, but it returned £4m this year because of a lack of interest among companies (Third Sector Online, 17 May).

Tina Steele, payroll giving manager at the institute, is reviewing the scheme and will report this month. "A lot of companies have only one donor because that was the incentive to put the scheme in place," she said. "A lot of companies sign contracts but don't promote it."

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