Small charities can miss out on payroll giving because they often cannot compete with household names that are represented by professional fundraising organisations, according to Tina Steele, payroll giving project manager at the institute. But small charities with limited resources could gain greater clout by clubbing together with charities within a 30-mile radius that have similar objectives.
"When the small and medium-sized enterprise grant programme was introduced, we found a big niche market for small charities to gain through payroll giving schemes through small businesses," said Steele.
"Small charities aren't likely to be accepted in the professional fundraising organisations basket, but might do better if they were to approach businesses as a collective."
Signing up to schemes through professional fundraising organisations suits larger organisations because they represent a wide range of charities and take on the workload, Steele said. But smaller businesses are more likely to respond to local requests.
The institute is to run a series of workshops this autumn that will advise small charities that want to get involved in payroll giving about how to approach small businesses collectively.