IoF calls for more fundamental reform of payroll giving system
Howard Lake | 19 April 2013 | News
The Institute of Fundraising (IoF) is calling on the Government to take a more ambitious view of Payroll Giving reform if the tax-effective method of giving is to be transformed effectively.
In its submission to HM Treasury's Consultation on Payroll Giving, which closes today, the Institute is encouraging the government to look beyond the remit of the consultation.
It points out that last year a survey of charities on payroll giving found that over 90% of respondents said they believed that fundamental reform was needed to increase the take-up of Payroll Giving significantly. Only 22% thought that an increase in the system could be achieved using the current system.
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Institute's recommendations for payroll giving reform
The Institute of Fundraising's recommendations include:
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a regulated service-level agreement between payroll giving agencies (PGAs) and charities
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a long-term strategy of leadership, governance and communication from Government
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a simplified system that makes it easier and more transparent for employers, charities and donors to use
- the development of an online service for employees to use to sign-up to Payroll Giving and transfer their account when they move to a different employer.
The Institute argues that the overhauled system should be based on three principles:
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Universality – greater access for donors to be able to give
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Connectivity – improved contact and relationship between the donor and the charity
- Portability – maintain the donation as circumstances change
The Institute's Chief Executive Peter Lewis explained: "This is a real opportunity to use the knowledge and experience of charities and fundraisers to understand properly how the underlying Payroll Giving system needs to change. We are urging Government to listen and work with us to implement wider and more fundamental change."
Jane Banks, Chair of the IoF Payroll Giving Special Interest Group and Payroll Giving Manager at the British Heart Foundation, added: "This submission confidently represents the voice of the charity sector. Payroll Giving needs reform and now is the good time to make it happen."
Podcast of Institute's presentation
You can listen to a podcast of the Institute's presentation of its response delivered at the IoF's Payroll Giving Special Interest Group's (SIG) annual meeting.
Institute of Fundraising's response to the Government's Payroll Giving Consultation by Instoffundraising on Mixcloud
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.