Share

Payroll giving consultation is disappointing, says IoF

Peter Lewis, chief executive, Institute of Fundraising
News

Payroll giving consultation is disappointing, says IoF

Fundraising | Vibeka Mair | 25 Jan 2013

Peter Lewis, chief executive of the Institute of Fundraising, has given a lukewarm response to the government’s long-awaited consultation on how to reform payroll giving, saying it does not go far enough to address fundamental problems in the system.

The consultation, which addresses how to make it easier to administer payroll giving and drive up the amounts raised through the scheme, makes a number of suggestions, including introducing standardised sign-up forms for all donors, employers and agencies.

However, Peter Lewis, chief executive of the Institute of Fundraising told civilsociety.co.uk that he was disappointed with how far the consultation goes:

“While this consultation addresses some specific issues, on which we will be engaging our members and responding in full, we are disappointed that it does not go further in trying to address the fundamental problems in the system which could make it work better for employers, donors and charities," he said.

The Institute’s members have said the payroll giving system needs transformational reform based on the principles of universality, connectivity and portability. Lewis says these three principles are not addressed in the consultation.

The consultation stops short of recommending that offering payroll giving should become mandatory for all employers, saying it should remain a choice. And while it recommends creating “exit packs” for donors that stop giving through the scheme, to help them continue their relationship with the charity, Lewis says this does not go far enough to embed portability and connectivity into the scheme.

Extra burden for charities

Joe Saxton, driver of ideas at nfpSynergy, was also underwhelmed by the consultation, saying the recommendation to open up payroll giving to the private sector was not a revolutionary change.

Currently payroll giving agencies must be charities, but the government has suggested scrapping this requirement.

Saxton said it would be very unlikely that the big companies who are already signed up to payroll giving, such as Tesco or the Royal Bank of Scotland, would switch payroll giving providers. “What would be their motivation?” he said.

Lewis also warned that opening up payroll giving to private providers would increase the burden for charities. “Multiple providers from a charity’s point of view is not a good thing. They already have to deal with eight to nine agencies at a time. More would increase the complexity.”

Charities welcome payroll giving review

Elsewhere, John Low, chief executive of the Charities Aid Foundation, which pioneered the concept of payroll giving, welcomed the consultation.

“It is excellent news that the government is committed to making this important tax relief scheme work,” he said. “With the right reform, payroll giving can play a huge part in encouraging more people to give and increasing the vital funds reaching charities at a time when demand for their work is higher than ever.”

Sir Stephen Bubb, chief executive of Acevo, also welcomed the consultation and took credit for encouraging the government to launch it. “We welcome the Treasury’s proposal to reform payroll giving, making it easier for donors to give regularly on a tax-free basis. This is what I called for in my letter to the Prime Minister earlier this month. There is massive untapped potential in payroll giving, and as a country we have to raise our game at making it work.”

Simon Hopkins, finance director at the British Heart Foundation, said payroll giving was “ripe for change":

“Today’s workforce is highly mobile and yet when someone changes jobs they must register for payroll giving all over again. It costs the sector an estimated £7m a year and is ripe for change."

And an NCVO spokesman said it was a good time for a review:  “Payroll giving levels have hit a plateau in recent years so it’s a good time to review what we can do to boost giving in the workplace. We’re pleased the Treasury are taking action on this and look forward to contributing to the consultation.”

The deadline for submissions to the consultation is 19 April 2013.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Wellcome Trust's investment portfolio reaches £18bn

19 Dec 2014

The Wellcome Trust has posted a 15.4 per cent return on its investment portfolio, earning £2.5bn for...

HMRC tax statistics suggest large rise in charitable giving

19 Dec 2014

Tax relief on giving is expected to rise by 11 per cent in the year to March 2015, suggesting a large...

Andrew O’Brien moves from NCVO to head CFG’s policy team

19 Dec 2014

Andrew O’Brien is to join the Charity Finance Group as head of policy and public affairs.

PDSA plans to change objects to offer paid for services

19 Dec 2014

The Charity Commission has sided with the People’s Dispensary for Sick Animals on a decision that would...

Charity Commission exercises inquiry powers four times as often as previous year, report shows

19 Dec 2014

The Charity Commission investigated almost 2,000 charities in the year to March 2014 and used statutory...

DWP promises measures to improve charities’ experience of the Work Programme

18 Dec 2014

The Department for Work and Pensions has agreed to introduce measures expected to improve the Work Programme...

CRUK crowdfunding effort flops

15 Dec 2014

Cancer Research UK’s three new crowdfunding campaigns did not manage to raise even 10 per cent of the...

Volunteering platform Do-it relaunches

12 Dec 2014

Online volunteering platform Do-it has been relaunched today by its new owner, the Do-it Trust, with more...

‘The challenge is getting people to use IT systems’

28 Nov 2014

Whatever type of customer-relationship management system charities use, the biggest challenge is convincing...

Join the discussion

Twitter button

@CSFundraising