Launched on 26th January 2005, 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".

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

*Source Charities Aid Foundation (CAF) Payroll Giving summary update and analysis 2003/04