Fundraising company has answer to Payroll giving problem
- Credit: Archant
New system could mean millions more for charities
A Barnstaple fundraising company has launched a new system to help boost donations to good causes.
Payroll Giving in Action (PGA) unveiled the world’s first payroll giving online donor passport system at the Home Office on Tuesday, which promises to reconnect charities with lapsed donors and boost take-up of the struggling payroll giving scheme.
Set up in 1987, the scheme is a tax-free way for tax payers to give money to registered charities directly from their pay or pension. Donations are deducted before tax so each £1 given will only cost the donor 80p, or 60p for those on a higher rate tax.
Following PGA’s announcement, donors will be provided with a unique Payroll Giving Passport - a permanent online ID which allows them to amend or change their donation arrangements at any time, check historical donations, and receive updates from their chosen charities.
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Crucially, for the first time it allows donors to maintain their pledges to good causes even when they change employer, an innovation that could see charities receiving millions of pounds extra in otherwise ‘lost’ donations each year.
PGA founder and director Jeremy Colwill said: “One of the big issues faced in the payroll giving sector is the disconnect that occurs between donor, employer and charity.
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“The Payroll Giving Portal overcomes these problems by connecting all parties in a way that’s never been possible before. It means that for the first time charities can instantly connect with new or lapsed donors, and their employers, and could result in millions of pounds extra going to good causes each year.”
Award-winning fundraising agency PGA was set up in 1996, and to date its work has led to over £70million being donated to charities with an average 30,000 new pledges per year, while Giving Online alone has so far accounted for £14million in donations and 29,000 new pledges.