‘Give as you Earn’ schemes (GAYE) are an easy way of giving money to charity where you authorise your employer to deduct a donation from your gross salary before calculating PAYE tax, either as a regular monthly payment or as a one-off gift. This means that donors receive immediate tax relief on the value of their donation.
Therefore, for a basic rate taxpayer wanting to give a £10 donation it will only cost £7.80 – or just £6 for higher rate taxpayers.
|Pledge||Value to School||Cost to Donor
Paying 22% tax
|Cost to Donor
Paying 40% tax
Many employers are further encouraging the scheme by matching their employee’s donations.
All you have to do is choose how much you would like to give and advise your payroll departments. The money goes via the Payroll Giving Agency (which charges a small administrative fee) to the designated charity or charities.
Contact your payroll department for a Payroll Giving Form. Please also let the Foundation Office know of your intentions so we can thank you!