If you are considering giving to charities via Payroll Giving or Give as You Earn, then all we ask is that you please consider Homestart FSC .
Payroll Giving donations are deducted before tax so each £1.00 you give will only cost you 78p, and if you're a higher rate taxpayer it will only cost you 60p. Please choose Homestart Family Support Centre as your chosen charity for Payroll Giving!
Did you know that in America it is estimated that 35% of people give to charities via their salary, yet only 3.8% of West Midlands households belong to a scheme and the national average is only 4%?
Payroll Giving enables employees to give to any UK charity straight from their gross salary (before tax is deducted), giving immediate tax relief on those donations. This means that £10 donated each month costs only £7.80 for employees paying standard rate tax (£6 for higher rate taxpayers) and will be worth as much as £20 to the charity (courtesy of the Government matching scheme for the first six months of your donations).
Until December 2006, a new Home Office-funded initiative, the Payroll Giving Grants programme is rewarding small and medium sized enterprises (SME's) that set up Payroll Giving with a grant of up to £500. What’s more, the first £10 of each employee’s monthly donations will be matched, pound-for-pound, for a period of six months (up until March 2007). That’s up to £60 extra per employee going to there chosen charity.
Who is eligible for a grant? Any organisation that has less that 500 employees and signs up to Payroll Giving any time before the end of December 2006 will be eligible to receive a grant of between £300 and £500.
Grants are tiered according to the number of employees, as below:
Organisation size
1 - 199 employees - £300
200 - 249 employees - £400
250 - 499 employees - £500
Companies can either keep this grant or donate all (or part) of it to charity.
Grants (and the matched donations) will be backdated to those that have signed up since 06 April 2004.
What do Businesses need to do? All businesses need to do is to sign a contract with a Payroll Giving Agency (PGA) who will transmit the donations on their behalf. For a list of PGA’s, visit: www.payrollgivinggrants.org
A PGA will give a grant application form, which will need to be completed and returned to them and grants will be triggered once the employees' donations have commenced. The grants scheme should cover any set up costs and companies can choose to donate all, or part of this grant. Download the Payroll Giving grant form from the following website:
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