MPs criticise slow take-up of payroll giving

03 May 2011 News

MPs have raised concerns that slow progress on payroll giving and “envy culture” is endangering charitable giving.

MPs have raised concerns that slow progress on payroll giving and “envy culture” is endangering charitable giving.

The concerns were voiced at a public administration select (PASC) committee meeting this week on bankers, financial services and philanthropy.

MPs questioned whether criticism towards organisations or individuals who were suspected of giving to charity for “good PR” was hindering charitable giving.

Robert Mirsky, a partner at KPMG at a founder of the charity Hedge Funds Care UK, who was giving evidence, agreed that a focus on the “self-interest” around giving was unhelpful:

“It does not happen in the same way in the USA,” he said.

Christ Blackhurst, city editor for the London Evening Standard, who also gave evidence at the meeting, added: “If a company gives money for good PR, why should anyone care?”

Payroll giving

Conservative MP Nick de Bois said payroll giving was the easiest way of giving money and he didn’t understand why it had not taken off.

Blackhurst said that bosses were not giving the lead:

“If a boss gave 5 per cent of a companies' profits to charity, an employee would be more likely to follow suit,” he said.

However, witness Sir Sandy Crombie, a non-executive director at the RBS Group, said it was not right for a CEO to say ‘I’m giving – so should you’:

“It’s as if a CEO is saying I’ll think less of you if you don’t give – it’s not the right way to make a difference.”

Blackhurst also said charities had to take some blame for the lack of interest in payroll giving:

“Charities are more focussed on large cheques,” he said, “I get mail shot galore from charities and not one talk about payroll giving.”

According to Geared For Giving, which campaigns for work place giving, workplace giving schemes.