Payroll Giving is a unique, tax-effective way for an employee to give a regular or one-off amount direct from their income (monthly or weekly) to charity, and once it’s set up, no further effort is required.
This method of donating is extremely important to Jimmy’s because it provides a regular, reliable, long-term source of income and, as tax relief is included in the donation, we do not have to spend time reclaiming the tax on donations.
When you donate money to a cause in the normal way you are giving out of your taxed income. When you choose Payroll Giving your donation is taken from your pay before tax is deducted. Simply put, Jimmy’s gets a bigger donation.
The pledged amount is deducted after National Insurance Contributions are calculated but before PAYE tax is deducted. The donation is therefore tax free for you, the donor, and the tax you would have paid goes to us instead. That means a monthly gift of £10.00, for example, will cost a basic rate taxpayer only £8.00!
Here’s how it works:
Step 1: Simply ask your payroll department to deduct a regular charitable donation from your gross pay – you choose the amount – and pay it to Jimmy’s Cambridge, registered charity number 1058737
Step 2: Your employer passes the money to an approved Payroll Giving agency which will distribute it to Jimmy’s.
If your firm does not participate in a Payroll Giving scheme, try to encourage them to implement one – it won’t cost your employer anything, while doing their bit for the community will make them look good!
Category: How to Donate