Payroll giving donors increase for first time since 20081

Fundraising | Tania Mason | 7 Aug 2012

The numbers of people donating to charity through their payroll has increased for the first time since the credit crunch began.

According to data just published by HMRC, 15,000 more employees used the government’s payroll giving scheme in the year to 31 March, than in the year before.

And while the total number of donors, at 735,000, is still well below the pre-recession 2007/08 peak of 758,000, the amount donated last year was higher than ever before, at £118m.

John Howard, partner and head of charity and not-for-profit at accountancy firm Wilkins Kennedy, which obtained the data, said the recovery was good news for the sector but warned it could be short-lived if the recession continues and unemployment rises again.

Payroll giving has generated £1bn for charities since its introduction 22 years ago. However, recently the scheme has been beset by accusations that it is not fit for purpose and the government has instructed the payroll giving agencies to find ways to make it more effective and efficient. Their response is expected shortly.

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Tina Steele
Retired Payroll Giving Consultant
7 Aug 2012

I'm delighted to see that Payroll Givers have increased significantly in the year 2011/12 and that income has risen by £4 million. This increase reflects the ongoing work of the PFOs and also, in time of recession, a reduction in those moving from job to job. Interestingly the biggest jump in income prior to the period mentioned was between 2006/07 and 2007/8 when income increased by £20 million. For those of us with long memories we can recall that this was at the end of the SME Grant Programme which was just starting to produce the required results, we can only surmise what the potential for growth could have been if the Programme had been extended as was requested by the Institute of Fundraising.

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