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Smaller Businesses Offered up to £500 to Get Britain Giving

Smaller Businesses Offered up to £500 to Get Britain Giving

Published 01-28-05

Submitted by Payroll Giving Grants Programme

Launched this week, a new UK-wide initiative - the Payroll Giving Grants programme - is rewarding any employer, with fewer than 500 staff, for setting up a Payroll Giving scheme with a cash incentive of up to £500. By setting up Payroll Giving, employers enable employees to give to charity straight from their gross salary and to get immediate tax relief of up to 40% of each donation. As an additional incentive, the new grants programme will match the first £10 donated by each employee, every month, for a period of six months.

The Payroll Giving Grants programme, a Home-Office funded initiative, is administered and promoted by the Institute of Fundraising and Business in the Community. Fiona Mactaggart, Home Office Minister, speaking today, said:
"By donating money straight from their salary, employees can make a regular commitment to their favourite good cause. Payroll Giving makes it easy for people to give money tax-efficiently because donations are made before tax is deducted from an employee's salary. Charities also benefit from regular, reliable funding and it gives businesses the chance to connect with their local community.

"Payroll Giving is something every organisation can get involved in, whatever their size. I hope this innovative new scheme - through which the Government will double employees donations by up to £10 per month - will encourage more small and medium sized businesses to get on board."

"2005 is the Year of the Volunteer and Payroll Giving is one of a number of ways in which people are being encouraged to give their time, talents and money to the voluntary sector."

John Healey MP, Economic Secretary to the Treasury, adds:
"Today's launch of the SME Payroll Giving Grants programme confirms the Government's commitment to promoting tax efficient giving to charity and there is now a real challenge for small and medium sized enterprises to make the most of the special boost this programme offers. I hope we will be able to look back in two years time and see a step change in levels of Payroll Giving among employees in small and medium sized enterprises."

Tina Steele, Project Manager of the Payroll Giving Grants programme, urges smaller businesses to take part:
"This new grants programme is intended to give even the smallest organisations, with minimal budgets, the chance to play their part in generating a regular, reliable income stream for charities and to make a difference in this way. Payroll Giving is good for business and a real benefit to offer employees. What's more, it's quick and easy to set up and run. So, if you haven't already established a scheme, then now is the time. There's never been a better time for giving."

Having recently signed up to the scheme, Harley-Davidson is eligible for a grant and has now achieved a participation rate of around 25% employees. Garry Brumfitt, Director of European Affairs at Harley-Davidson, comments:
"Payroll Giving allows our staff to feel closer to their chosen charities, it is easy to administer and, because of the matching scheme, it means that those charities get even more from our money. Most of our employees have chosen to support BEN - the Motor and Allied Trades Benevolent Fund."

The aim of this programme is to provide sustainable income sources for UK charities by increasing the number of employers and employees engaged in Payroll Giving.

As an employee donations scheme with minimal administrative requirements or costs, Payroll Giving can be an ideal way for organisations with small budgets to generate a regular, reliable income stream for good causes.

In 2003-04, £91 million was raised for charities through Payroll Giving alone, although only 1% of UK companies currently offer the scheme. The Payroll Giving Grants programme is working to encourage more companies to make Payroll Giving available to staff and to provide vital support for charitable organisations and the local community. Grants are payable to organisations with fewer than 500 employees that sign up to Payroll Giving before the end of 2006 and will be backdated to those that have recently signed up (since 06 April 2004).

For free guidance materials and further information, call 0845 602 6786 or visit www.payrollgivinggrants.org.uk

NOTES TO EDITORS
1. The Payroll Giving Grants programme (www.payrollgivinggrants.org.uk) is a Home Office-funded initiative, administered and promoted by the Institute of Fundraising and Business in the Community. The programme consists of two parts: a one-off grant of up to £500 to employers who implement and promote a new scheme (tiered according to the number of employees); and a matched gift of up to £10 per month for the first six months from when an employee signs up, from the Government for each new payroll giving donation.

Grants will be paid to organisations with fewer than 500 employees that sign up to the programme before the end of December 2006. Grants are tiered according to the size of the organisation. £300 for employers with 1-199 employees, £400 for those with 200-249 employees and £500 for those with 250-499 employees. Donations will be matched during the first six months of an employee's gifts, until the end of the programme in March 2007.

2. How does Payroll Giving work?
Payroll Giving enables employees to donate to any UK charity straight from their gross salary, giving immediate tax relief. The new grants programme, matching donations of up to £10 from each employee every month, for the first six months after they have signed up to the scheme, is a real incentive. This means that £10 donated each month would be worth as much as £20 to the charity and yet it will only cost employees paying basic rate income tax £7.80 (or £6 for higher rate taxpayers).

3. The Institute of Fundraising (www.institute-of-fundraising.org.uk) represents fundraisers and fundraising throughout the UK and is committed to the highest standards in fundraising management and practice. The Institute of Fundraising is the largest individual representative body in the voluntary sector with 4000 individual members and 200 organisational members.

4. Business in the Community (www.bitc.org.uk) is a unique movement of companies based or listed in the UK committed to improving continually their positive impact on society, with a core membership of over 750 companies including 80 of the FTSE 100. Business in the Community is one of the largest and longest-established corporate responsibility organisations in the world.

5. Active Communities describes the work of the Home Office (www.homeoffice.gov.uk) to build a vibrant voluntary and community sector and support volunteering and charitable giving. The Home Office is funding this UK-wide programme with a budget of £8.3 million.

6. Based in Oxford, Harley-Davidson Europe is a direct subsidiary of the world's oldest motorcycle company, Harley-Davidson Motor Company. Founded in 1903 in the United States, Harley-Davidson is famous for producing award-winning touring and cruising motorcycles and is a Fortune 500 listed company on the New York Stock Exchange. Harley-Davidson UK (www.harley-davidson.co.uk) is a wholly-owned division of H-D Europe, with 32 dealerships in the UK and Ireland offering new and used Harley-Davidson and Buell motorcycles, as well as the full range of Harley-Davidson parts, accessories and MotorClothes. Harley-Davidson UK also offers its own bespoke training facility, Rider's Edge, situated in Wales.

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