# Charities lose 10% payroll giving supplement

- Link: https://fundraising.co.uk/2004/03/17/charities-lose-10-payroll-giving-supplement/
- Published: 2004-03-17T00:00:00+00:00
- Author: Howard Lake

**Charities Aid Foundation (CAF) has expressed disappointment at the Chancellor’s
decision to end the 10% tax relief supplement on all company payroll giving donations.**

The decision was not unexpected. The boost, launched in April 2000, was only planned
to run for three years, so the sector was fortunate that it was extended by a further
12 months in 2003. It was only ever intended as a boost to promote payroll giving
and not as a permanent government hand-out.

Nevertheless, what the government took with one hand it gave with another, and CAF
offered a cautious welcome to the announcement that the government would extend 
cash incentives to small and medium-sized companies to take up the scheme.

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Since the tax boost was launched in April 2000, payroll giving has seen considerable
growth: in just four years the number of companies offering payroll giving has doubled,
with over five million employees now able to donate to charity, tax-free from their
pay.

According to Stephen Ainger, CAF’s Chief Executive: “The 10% supplement has had 
a dramatic impact on employee giving over the last few years with donations growing
from

£37 million in 2000 to £86 million in 2003. What is particularly disappointing about
the announcement is that the scheme’s success has come at a relatively low cost 
to Government.”

NCVO was equally cautious in its response. It was “concerned that this scheme does
not appear to have been subject to any consultation with the sector”. The umbrella
organisations aid that it “will be seeking reassurances from the Government that
there will be adequate monitoring and assessment of the scheme’s effectiveness at
driving up payroll giving.”

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