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Section 14

Payroll giving and post-tax salary donations

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Please provide any comments you have on the redrafted code rules below. You can comment on as many rules as are relevant to you. You can also save your responses and return to them later.

You can see how rules in the current code relate to the redrafted code in the Table of Changes.

The supporting documents include Code Compliance Guides which will help you understand how to meet the requirements of the redrafted code, and a Glossary with definitions of specific terms in the redrafted rules.

14. Payroll giving and post-tax salary donations

This section includes the standards for promoting payroll and post-tax salary donation schemes in the workplace. It includes meeting HM Revenue and Customs' (HMRC's) requirements and making sure that employers and employees have clear expectations about how your scheme works.

There are various types of fundraising within the workplace, and there are specific laws and self-regulation that you should keep to. The Code of Fundraising Practice specifically covers donations made direct from an employee's salary. This could take either of the following forms.

  • Payroll giving - a tax-efficient scheme where the donation is taken from employees' pay before tax is taken.

  • Post-tax salary donations - where employees' donations are taken direct from their salary after tax has been taken.

These schemes only apply to giving to charities, and all payroll-giving schemes must be run through a payroll-giving agency chosen by the employer. Payroll-giving agencies receive employees' donations which the employer has taken through the payroll, and pass these to the relevant charities. HMRC's website has a list of currently approved payroll-giving agencies.

14.1 Payroll giving and post-tax salary donations

In this section, ‘you’ means a payroll-giving agency or a professional fundraiser involved in payroll giving or post-tax salary donations, unless we say otherwise. 

14.1.1

You must be clear to donors that they are free to:

  • Give to any charity of their choice, even if you are promoting a particular charity

  • End an agreement to donate at any time.


14.1.2

You must not offer any benefits to donors and must ensure that any references to different levels of tax relief are correct.

14.1.3

Professional fundraisers involved in payroll giving and post-tax salary donations must:

  • Ensure donors' wishes relating to which charity or charities will receive their donation are followed.

  • Process and pass information relating to new donors to the charitable institution as soon as possible.

  • Represent the charities in a neutral way when working for more than one charity.


Professional fundraisers involved in payroll giving are also required to meet the solicitation statement expectations set out in Section 7 Fundraising Partnerships.

Promoting Payroll Giving and Post-Tax Salary Donations in the Workplace

14.1.4

You must agree conditions for access with the relevant employer before discussing donations with employees.

14.1.5

Fundraisers must wear visible photo ID badges, provided by the organiser of the fundraising activity or the relevant fundraising organisation, at all times when promoting payroll giving in the workplace.

Legal Requirements

Payroll-giving agencies and employers using their schemes must comply with The Charitable Deductions (Approved Schemes) Regulations 1986.

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