Payroll giving

Tax incentives for charitable giving - Payroll giving - Corporate giving - Legacies - Gift Aid and museums

Payroll giving is a useful way of encouraging people to give regularly to your institution. It offers an incentive to people who are taxed through PAYE to make monthly or weekly charitable donations through their employer.

The donation is taken directly from their gross salary before income tax is deducted.

Therefore if a basic rate taxpayer donor pledges £10 a month to a charity, it will reduce the income tax they pay by £2 a month (£4 for a higher rate taxpayer), meaning the actual donation will only have cost them £8 (£6 for a higher rate taxpayer).

Unlike Gift Aid, the additional tax relief cannot be recovered by charities.

The advantages of the scheme are that it provides a reliable income stream, drawing from a wide pool of people likely to continue giving for some time, and there is no administrative burden associated with processing donations, which are processed by the employer.

In some cases, the donor’s company will also operate a match giving scheme.

See the Payroll Giving Centre website to find out all you need to know about setting up the scheme.

General links and resources

Further advice

Museum Practice (MA members only):


Search the MA’s Find an Event database under ‘fundraising’ for training and workshops on boosting charitable giving