It is simple for both employer and employee.
All an employer needs to do is to enable staff members to donate through their payroll system (it’s easy and, yes, your Community Foundation can help to set this up).
Not only is payroll giving an easy way for people to give a little often, it also has the added bonus of an immediate tax benefit.
Employees receive an immediate tax credit for their donations, instead of having to retain their receipts and wait until the end of the year to claim a rebate.
For every dollar donated they receive a third back as a tax credit in the same pay period (if you donate, say, $7.50 a week, the government pays $2.50 of this meaning only $5 is deducted from your pay packet).
Payroll giving is a very powerful way for communities support themselves and to build a strong legacy for the future.
For further details on payroll giving talk to your local Community Foundation and find our more through the links on the Inland Revenue website:
– payroll giving for employers
– payroll giving for employees
One person’s story: payroll giving making an impact
Cheryl Reynolds loves her community of the Waikato and, during her time working for Momentum Waikato she began gifting 10% of her salary back to the Foundation through payroll giving. Cheryl decided to use her fund to support two Waikato social enterprises close to her heart. She says, “Anyone can give through payroll giving, no matter the amount – it’s easy, it adds up and can make a real difference. My fund is growing steadily over time, and now I have the joy of choosing how to distribute it to create impact here and now in our community.” See Cheryl’s story at the link here