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Registered Charities

Payroll giving

Payroll giving is a voluntary scheme that enables people to make donations directly from their pay to a chosen "donee organisation". People who donate through payroll giving receive immediate tax credits relating to the donations they make each payday.

The scheme is administered through Inland Revenue's PAYE tax system. Employers who electronically file their employer monthly schedule and deduction using Inland Revenue's ir-File can sign up for the scheme and make it available to their staff. Then, if they wish, staff members can make donations directly from their pay to the donee organisations of their choice.

People who donate through payroll giving receive tax credits relating to the donations they make each payday. This means they no longer have to wait to claim tax credits at the end of the tax year. However, they can still claim for any donations they make outside the new payroll scheme.

Can the Charities Commission give employers a list of charities that their employees can choose to donate to?

No. You can search the Charities Register to find charities using a range of criteria. For example, you could search for charities working for the care and protection of animals in a particular geographical area.

Once you have completed your search remember to check that the charities you have selected are on the approved donee organisations list.

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Where can I find more information about Payroll Giving?

Inland Revenue provides a very informative   Payroll Giving Guide (PDF) which will help you with further queries and The Office for the Community and Voluntary Sector has developed payroll giving information, tips and tools for employers and donee organisations.

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What is a donee organisation?

A donee organisation is a special type of organisation approved by Inland Revenue. Individual people who donate money to an approved donee organisation can get a tax credit for the donation.

Donee status is not affected by the Charities Act. Inland Revenue will continue to administer donee status and maintains a list of approved donee organisations.

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Are all the charities on the Charities Register donee organisations?

No. Organisations don't have to be on our Register to get donee status. You can check the approved donee list or phone Inland Revenue on 0800 227 774.

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Does my charity have to issue receipts for payroll donations?

Donors don't require a receipt for these types of donations, on the pay slip their employer gives them it will show the donation made and the tax credit for payroll donations received.

You may issue a receipt to the business who sent the donation on behalf of the staff member.

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Does the tax credit for payroll donations have a limit?

Yes there is a limit on tax credits for payroll donations.

For more information visit the Inland Revenue website or call 0800 227 774.

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When I donate through payroll giving will I receive a receipt from the charity?

You don't require a receipt for these types of donations.

On the pay slip your employer gives you it will show the donation you've made and the tax credit for payroll donations you've received.

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What are the benefits for employees of donating via payroll giving opposed to making other donations?

When donating via payroll giving you don't need to wait until the end of the year to claim your tax credit. Instead, each pay day your employer will calculate the tax credit for payroll donations you're entitled to—this will increase your take home pay each pay day that you donate.

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How will I know if the charity has received my payroll donation?

Your employer has a set amount of time in which the donations are to be passed to the donee organisation.

If you wish to know if the donee has received your donation you'll need to confirm this with your employer.

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Can my charity get contact details of payroll donors so we can thank them for their support and add them to our donor database?

The employer only needs to forward the donation amount, they do not have to provide the names of individual donors.

Visit The Office for the Community and Voluntary Sector website for ideas on how you can acknowledge supporters who donate to your charity through payroll giving.

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As an employee what do I need to do if I wish to participate in payroll giving?

You need to check with your employer that they are offering payroll giving. They will tell you the things they need to know to be able to pass the donation on for you.

For more information read the   Payroll Giving Guide (PDF) released by Inland Revenue.

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Where can employers get information about payroll giving?

Employers seeking to establish payroll giving schemes in their workplace can find helpful information at www.payrollgivinginfo.org.nz.

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