Payroll Giving
Give to Practical Action directly through your pay
Payroll Giving (also known as Give As You Earn) is a way to donate to charity directly from your salary or pension before tax is calculated. This makes it a highly tax-efficient way to give because the donation comes from your gross pay, meaning you get tax relief instantly and it costs you less to give more. It’s managed through your employer’s PAYE system, where deductions are sent by a payroll giving agency to your chosen charities, with no minimum or maximum amount.
Why payroll giving?
As your donation is made before tax, the amount you pledge to us will actually cost you less! Because your donations come from your pre-tax pay, with the tax relief being applied after, you only pay 55-80% of your total donation. Here is how your donation may look if you choose to support us through payroll giving:
Payroll Giving instantly lowers the cost
| Cost of your standard donation today | Cost to a 20% taxpayer | Cost to a 40% taxpayer | Cost to a 45% taxpayer | Practical Action receives |
| £10 | £8 | £6 | £5.50 | £10 |
| £25 | £20 | £15 | £13.75 | £25 |
| £50 | £40 | £30 | £27.50 | £50 |
How is Payroll Giving different to Gift Aid?
For some, Payroll Giving is a more efficient way to donate regularly, straight from your salary. Because your donation is taken before tax, you receive the tax relief immediately. If you pay 40% or 45% tax, this can make your gift go further for Practical Action than Gift Aid, which adds 25% to eligible donations.
It’s also easier to process for Practical Action – giving through your payroll means we can spend less time and money on the admin costs involved with Gift Aid claims, and more on the life-changing projects you are supporting.
How will my payroll gift help?
Regular donations are what allow us to maintain our life-changing projects. They give us the confidence to plan ahead. By knowing we can count on future income, it means we can plan more work to support more people to forge their own futures with solutions that foster resilience, create jobs and build lasting prosperity.
How do I set up payroll giving?
To set up payroll giving, ask your HR department if they offer it, and if so, request an application form or details on how to sign up. Name Practical Action as your charity recipient and specify the donation amount from your gross pay. After that, your HR team will handle the admin for you, so it’s quick to arrange and an easy way to make a big difference.
If your employer doesn’t have a scheme, ask them to set one up by contacting a Payroll Giving Agency such as Charities Aid Foundation. The process is quick and straightforward and offering the option of payroll giving boosts their employee benefits package – so it’s a win-win!