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Employee awareness low on payroll giving, research finds

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With Payroll Giving Month taking place this February, research from CAF shows that two in five (41%) employees don’t know if their employer offers the service. 

A similar percentage (40%) believe their employer doesn’t offer payroll giving, while only 18% of people say it is available at their workplace.

YouGov surveyed 1,077 people for Charities Aid Foundation (CAF) in December – 70% of which also said they believe businesses should be more open and transparent about their charitable donations.

Almost half (46%) said they do not know whether their employer donates a proportion of its profits to charitable causes while 35% believe they don’t donate at all.  

However, nearly half (47%) said they would be more inclined to work for a business that donates to charitable causes. 68% also believe businesses have an obligation to support the local communities in which they operate.

Mark Greer, CAF’s Managing Director for Philanthropy Services, said:

“Working for a business that has a social purpose matters to employees and jobseekers. How a company supports its communities, whether local or global, is increasingly seen as fundamental to attract and retain talent in a world where competition is high.

 

“However, corporate responsibility needs to be authentic and transparent. Embedding purpose by engaging employees and partnering with charities can help a business to have a positive impact on society and meet its strategic goals. Payroll giving is an accessible and affordable way for employees to engage with their employer’s responsible values. By matching your employee’s donation, you can work together to have a positive impact on society.”

CAF has granted more than £1.6billion in employee donations to over 40,000 charities through its Give As You Earn payroll giving scheme since it launched in 1987. With payroll giving, charitable donations are taken from pay before income tax is deducted so for a charity to receive a £25 donation, it effectively ‘costs’ a base rate taxpayer £20 or a higher rate taxpayer £15. Many employers also match their employees’ payroll giving, which can double the donation a charity receives. 

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