How to Qualify for Payroll Giving

If you're a charity, school or community organisation then payroll giving is an efficient, low-cost way to raise funds and receive regular income support.

An organisation needs to be approved by Inland Revenue as a donee organisation to be eligible to participate in payroll giving. Being on the Charities Register does not automatically qualify a group as a donee organisation because only Inland Revenue approves donee status.

If your organisation is already registered as a charity with the Charities Commission and indicated that donations are a source of income on the application form, this information will be passed on to Inland Revenue and it will automatically consider donee organisation status.

You can check if you are on the approved Donee Organisations List on Inland Revenue's website. If you are not on the donee list you can apply in writing to Inland Revenue.

What can I do to help my organisation benefit from payroll giving?

  1. Promote your charity to potential donors
    Inland Revenue's list of donee organisations does not include contact details or other information. When promoting your charity, you may wish to refer people to your entry on the Charities Register. Check your details on the register to ensure they are all up to date and correct. You are encouraged to spread the news of payroll giving to your networks, to current donors and to the media.
  2. Establish a system for issuing payroll giving summaries
    This is not compulsory but it is recommended that donee organisations issue a payroll donation summary to the employer for their business records. The individual donor doesn't need receipts for donations made through their payroll because their pay slip will show all the details and they have already received their tax credits.
  3. Offer payroll giving to your own employees
    If your organisation employs staff, be one of the first to offer payroll giving options to your employees - it will help you get to grips with how it works and you'll gain an appreciation of what is involved in setting it up.
  4. Keep donors informed
    Consider how you will keep payroll givers informed about your work as you will probably not know their names and contact details - perhaps you need a newsletter for people to sign up for, a Facebook page or posters for workplaces? If existing donors switch over to payroll giving - offer them a way to stay informed about how their donations are used by your organisation.
  5. Use your existing networks to get the message out
    You are encouraged to spread the news of payroll giving to your networks, to current donors and to the media. This includes any volunteer staff and members of your board who may have links into businesses and could provide opportunities for you to promote both payroll giving and your organisation as a recipient donee organisation

    It's also important to understand the challenges that employers and employees may face in coming to grips with payroll giving. Check out the Employer and Employee section of this site so that you are prepared for any questions potential donors might have about the scheme.