Payroll Giving: A Simple Way to Transform Lives Through Your Payslip

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It is a Monday morning, and your payslip arrives in your inbox. You glance at the numbers, tax deductions, National Insurance, net pay, but what if, nestled within those figures, there was a story? A story about a family who, in their darkest moment, found hope because of a small, steady contribution from you.

This is the magic of Payroll Giving. It is not just a line on your payslip. It is a way for employees and businesses to create lasting change, providing charities like Momentum Children’s Charity with the stability they need to transform lives every day.

Let us explore what Payroll Giving is, how it works, and why it is a win-win for employees, businesses, and families in need.

What is Payroll Giving?

Payroll Giving, also called Give As You Earn, is a tax-efficient way for employees to donate to charity directly from their salary. It allows contributions to be deducted before tax is calculated, meaning a portion of the donation is covered by the tax you would otherwise pay.

For example:

• A basic-rate taxpayer donating £10 will see only £8 deducted from their salary.
• For higher-rate taxpayers, that same £10 donation costs just £6.

For employers, Payroll Giving is an opportunity to facilitate generosity, strengthen corporate social responsibility, and even match employee contributions to amplify impact.

At Momentum Children’s Charity, these regular donations help us fund vital services such as counselling, hospital refurbishments, and creative therapies for families facing the unimaginable.

How does Payroll Giving work? 

Employees choose how much they want to give and which charity they want to support. Employers partner with an HMRC-approved Payroll Giving agency to deduct the amount from employees’ pre-tax salary and transfer it to the chosen charities.

Why Payroll Giving is Essential for Charities

Imagine a family arriving at a hospital with a seriously ill child. Their world has been turned upside down, and every moment feels uncertain. At Momentum Children’s Charity, we step in to provide stability, emotional support, respite breaks, and spaces that feel like home in hospitals.

These services are not one-time acts of kindness. They require consistent funding to be sustainable, which is why Payroll Giving is such a lifeline.

Unlike one-off donations, Payroll Giving provides a predictable income stream that allows charities to plan for the future, expand services, and respond to families’ needs in real time.

Payroll Giving vs Gift Aid: Which Is Better?

When it comes to supporting charities, both Payroll Giving and Gift Aid are effective options, but they work differently and suit different needs.

Payroll Giving provides immediate tax relief. Donations are taken from your gross salary before tax, which means you do not pay tax on the portion you donate. For example:

• A basic-rate taxpayer donating £10 only sees £8 deducted from their payslip.
• A higher-rate taxpayer sees just £6 deducted for the same donation.

Payroll Giving is a consistent, automated way to support charities, giving them a steady and predictable source of income.

Gift Aid, on the other hand, boosts the value of your donation by 25 percent. If you donate £10, the charity can claim an additional £2.50 from HMRC. However, Gift Aid donations are made post-tax, meaning there is no immediate tax relief for the donor. Instead, the charity claims the tax back from the government, often weeks or months after the donation is made.

Which Is Better?

The choice between Payroll Giving and Gift Aid depends on your priorities:

• If you value simplicity and consistent support, Payroll Giving allows you to give directly from your payslip with no extra steps required. This method ensures charities receive regular funding, helping them plan long-term.
• If you make occasional donations, Gift Aid is ideal for one-off gifts, especially if you are not in a position to commit to regular giving.

For Momentum Children’s Charity, Payroll Giving provides the stability to fund long-term projects like hospital refurbishments and counselling programs, ensuring families get the help they need without interruption.

Imagine This: Through Payroll Giving, every month, a small amount from your payslip helps create brighter, child-friendly hospital spaces where children feel less afraid. Meanwhile, Gift Aid transforms one-time donations into bigger contributions, helping with immediate needs.

Both are vital, but Payroll Giving’s consistency ensures no family is left unsupported.

How to Choose the Right Charity for Payroll Giving

The beauty of Payroll Giving is that you can support the causes closest to your heart. Here is how to choose the right charity:

• Find Alignment with Your Values: Look for charities that resonate with your personal beliefs or, if you are an employer, align with your company’s CSR goals. Momentum Children’s Charity, for example, supports families of seriously ill children through a wide range of practical and emotional services.
• Prioritise Transparency: A great charity will show you exactly how your donations are being used. Momentum provides detailed reports and heartfelt stories that highlight the impact of regular giving.
• Think About Long-Term Impact: Payroll Giving is about sustainable support. Choose a charity with a proven track record of using funds to create lasting change.

Why Businesses Should Embrace Payroll Giving

For businesses, Payroll Giving is more than a charitable initiative. It is a statement about your values and your leadership. It shows your employees, stakeholders, and customers that you are committed to making a difference.

Key Benefits for Businesses:

• Boost Employee Engagement: Employees feel proud to work for a company that shares their values and supports their desire to give back.
• Enhance Your CSR Strategy: Payroll Giving is an easy way to meet corporate social responsibility goals while fostering a culture of generosity.
• Attract Purpose-Driven Talent: Businesses that prioritise social impact are more appealing to professionals looking for meaningful work.

Why Momentum Children’s Charity Should Be Your Choice

Conclusion

Payroll Giving is more than a donation. It is a story of care, generosity, and purpose. Whether you are an employee looking to make a meaningful contribution or a business aiming to lead with impact, Payroll Giving offers a simple, effective way to create change.

At Momentum Children’s Charity, we invite you to join us in building a future where no family faces their journey alone. Together, we can transform lives, one payslip at a time.

Start your Payroll Giving journey today.

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