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Business leaders back universal payroll giving scheme idea

According to research carried out for the Charities Aid Foundation (CAF), the majority of company directors would support the government’s introduction of a universal payroll giving scheme, which would enable all PAYE employees to give tax effectively to charities.

Currently only 44% of PAYE employees have access to a payroll giving scheme but nevertheless over £100 million is given to charity this way each year.

GFK carried out the research for CAF in November, contacting the CEOs, MDs, COOs, and Presidents of 100 companies with no fewer than 500 employees, operating in a range of industries including legal, manufacturing, property, finance, manufacturing, retail and transportation.

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Seventy per cent of those surveyed, all of whom operate a community investment programme, back the idea of a universal payroll giving scheme.

Hannah Terrey, Head of Policy and Public Affairs at CAF, said: “A universal scheme could really help encourage many more people to get involved in regular giving and to continue to give when they move jobs.

“We will be discussing with more businesses, charities and government how a universal scheme could work. Payroll giving has existed since 1987 but its full potential has never been realised and if it was millions more could be raised for charities.”

Heads of companies that already offer a payroll giving scheme felt it made staff more engaged and nearly two-thirds (65%) said that offering the scheme fulfilled a basic employee demand.

www.cafonline.org

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