MELANIE JOHNSON SETS CHARITY CHALLENGE FOR BRITISH BUSINESS

Top business executives were today challenged to help double charity donations directly through the payroll by Economic Secretary to the Treasury, Melanie Johnson.

At a meeting of Britain's top companies at No.11 Downing Street, Melanie Johnson invited support for the Government's new campaign to promote giving to charity through the pay packet.

Speaking at the meeting jointly arranged with the Institute of Charity Fundraising Managers and Inland Revenue, Melanie Johnson said:

"Over the next three years, I want to double the amount of money given to charity through Payroll Giving, to £60 million a year. I want all our major businesses to help us reach that target - by offering a Payroll Giving scheme to their employees or by making a greater success of their schemes."

Research has shown that many employees would join schemes if they had an opportunity to do so; while employees in those companies that do offer Payroll Giving would give more through the scheme if only they were asked to do so.
Miss Johnson continued:

"To boost our campaign, the Government has pledged a ten per cent supplement on all donations until April 2003 - that's 10p for every pound donated. In addition, the £1,200 ceiling on Payroll Giving will be removed which means that employees will be able to give as much as they like to charities through their pay packet and get tax relief.
"Together, employers and their employees can help us to achieve our vision of a new Giving Age."

Turning to the publicity campaign to promote Payroll Giving that will be launched during the summer, Melanie Johnson announced the membership of an Advisory Group for the campaign.

The Advisory Group will help the Inland Revenue to ensure that the campaign works to maximum effect, reaching employers and employees. The members are:

Nick Brooks: Chair of Standards Committee, Institute of Charity Fundraising Managers and partner in Kingston Smith
Jenny Byers: Executive Director Donor Services, Charities Aid Foundation
Christine Cryne: Marketing Director, Sharing the Caring and Help the Aged
Peter Hughes: Senior Manager Public Policy, NatWest Group
Yvette Lamidey: Policy & Research Director, Institute of Payroll & Pensions Management and W H Smith
Campbell Robb: Head of Campaigns, National Council for Voluntary Organisations
Stephen Serpell: Head of Community Partnership Programme, BT
Keith Sonnet: Assistant General Secretary, UNISON
Helen Daniel will also assist the Inland Revenue in the management of the Campaign on secondment from the National Council for Voluntary Organisations.

NOTES TO EDITORS

1. The changes to Payroll Giving are part of the Getting Britain Giving package of measures for charities, announced by the Chancellor in the Pre-Budget Report last November (HM Treasury 8 of 9 November 1999). The measures will be included in the forthcoming Budget and Finance Bill, and will take effect from April 2000.

2. Payroll Giving is an easy and effective way in which employees (and pensioners in employer's occupational pension schemes) can give to charity. Employees authorise their employers to deduct donations from their pay. Because donations are deducted before Pay As You Earn tax is calculated, employees get full tax relief at their highest rate of tax. Employers then pass on the donations to an Inland Revenue-approved agency, which in turn distributes the donations to the charities chosen by the employees.

3. It is not compulsory for employers to offer Payroll Giving schemes but many do so because the scheme promotes good employer-employee relations and develops links between the employer's business and the local community. Some case studies of employers who provide successful schemes, are attached.

4. Although charitable donations through Payroll Giving has been increasing in recent years, research carried out last year as part of the Government's review of charity taxation showed that it still has low take up, with only 1% of employers offering schemes. But 21% of the population said they would or might join the scheme if it was offered to them. And over a third of employees already taking part in Payroll Giving said they would increase their donations if asked to do so.

Two new Payroll Giving guides for employers and employees are now available on the Inland Revenue website by clicking on the link below.

The Institute of Charity Fundraising Managers is the largest individual representative body in the voluntary sector with 3,000 individual members and 1,200 affiliated organisations. Membership reflects income to the sector of some £5 billion per annum and delivers more than £12 billion service output covering all areas of social activity.

This event took place as part of the Government's Active Community Week which aims to not only encourage the giving of money, but the giving of time too. Ministers from a number of Government departments are promoting the giving of time through a series of events. More details about the Active Community Week can be found from the Press Offices of the Home Office (Soraya Mitchell: 020 7273 4650) and Cabinet Office (Michelle Bayley: 020 7270 0375).

ANNEX

Payroll Giving success stories

NatWest

NatWest has been encouraging staff to get involved in payroll giving since 1994, when the bank launched Charity Plus as its own brand of payroll giving. Since the program's launch, the number of people taking part has grown from an original base of just over 300 people to more than 8,000.

What are the ingredients for success? According to Lucy Swanson, Head of Community Relations for NatWest, Charity Plus is treated with the same professionalism in marketing and communication as the rest of the bank's products.

"Our research shows that NatWest staff are proud of the support given to the community and welcome the opportunity to direct where the money goes. What's more, about two-thirds of staff currently know about Charity Plus, so there is still room for growth," she said.

Ms Swanson believes business and community cannot be separated because the bank's success is dependent on operating in healthy, vibrant, and competitive communities.

"A just society and a successful society needs to involve those less fortunate. Schemes such as Charity Plus are a practical demonstration of what can be done."

Rolls-Royce

Rolls-Royce didn't have a Payroll Giving scheme but wanted to offer the benefit to their staff. They asked three major payroll giving agencies to tender for the contract to administer the scheme and produce proposals for promoting it. Rolls-Royce offered the contract to an agency and a promotion organisation which the agency had invited to work with it, to promote the scheme.