More than £1.6bn has been donated to charitable causes through the Charities Aid Foundation (CAF)’s payroll giving service since its launch 35 years ago.
Last financial year, more than £110m was donated to charities through Give As You Earn, with more than £35m given by employees and £74m in tax relief.
Payroll giving is tax effective as charitable donations are taken from pay before income tax is deducted.
Charities receive a reliable and regular income, and reduced administration and fundraising costs. Some employers also match their employees’ payroll giving.
Neil Heslop, chief executive of CAF, said: “We are proud to be the largest payroll giving agency in the country, which has enabled employees to give meaningfully to causes that they care about for 35 years.
“We know from our research that employees want to work for a business that has a strong social purpose. By matching donations, businesses can put their social purpose into action and contribute more to good causes which are important to the people that work for them.
“As businesses and individuals have become more socially minded, payroll giving has also become to a significant workplace benefit. It has also been shown to be a highly effective way to respond to humanitarian emergencies.
“In March for instance, we saw employees respond generously to help people fleeing Ukraine by signing up for payroll giving and increasing contributions, taking advantage of tax relief and employer matching.”
Since its launch in 1987, the Give As You Earn scheme has supported more than 40,000 UK charities.
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