Five large charities have set up a business that aims to double the number of people using payroll giving, and raise an additional £150m for the sector by 2030.
Barnardo’s, Crisis, The Royal British Legion, RNIB and WaterAid, supported by the consultancy Good Innovation, have created WeAreGoodGiving Ltd, which will be led by Richard Packman, an entrepreneur and digital expert.
Each charity will take an equal share in the business and use a technology-led approach to reach new audiences.
It aims to double the number of UK payroll givers and raise an additional £150m for charities over the next nine years.
The value of payroll giving donations has been relatively steady over the last few years, with around £130m being donated each year. This leads to around £40m in income tax relief, according to the government’s UK charity tax statistics.
'We will put payroll giving back on the map'
Richard Packman, managing director at WeAreGoodGiving Ltd said: “Giving through payroll is the most tax-efficient way for employees of any company to donate to any charity of their choice.”
He said 80% of companies do not offer it, and just 4% of UK employees use it. Currently, very few businesses across the UK offer payroll giving to their employees meaning even fewer individuals are able to support causes this way, despite it being the most tax-efficient way to donate.
“We will put payroll giving back on the map, drive a huge amount of new income for charities and enable employees of any size business to support the causes they care about in the most efficient and convenient way,” he said.
Over the course of the pandemic, traditional fundraising approaches like mass events and shops have been significantly disrupted, so this new venture hopes to help grow income in charities.