Administration
More than 8,500 employers in the UK currently operate the scheme, and circa 2% of UK employees participate. Participating employers deduct agreed sums of money from their employees pay before calculating tax, and forward the money to a payroll giving agency; the agency then distributes the money to registered UK charities in accordance with the employees wishes (minus an administration fee, which may vary considerably between agencies). Approximately 40% of employers cover this administration fee on behalf of their employees.
Payroll giving is operated by several agencies which do the administration and processing to link the donations to the correct charities. Employers have to choose which agency to operate with and may not pay the charities directly.
Payroll Giving is promoted within workplaces by a number of Professional Fundraising Organisations or charities
Read more about this topic: Payroll Giving