A workplace giving scheme is an arrangement between a NFP organisation and a business to enable the employees of the business to donate to the community organisation.
Workplace giving is also known as payroll giving or pre-tax giving, and involves employees consenting to make regular donations to a NFP community organisation out of their pre-tax income. Workplace giving can be even more effective if the business agrees to match employee donations dollar for dollar, thus maximising donations and building workplace giving into the workplace culture.
The benefits of workplace giving schemes for NFP organisations are many. In turn, there are a wide range of benefits for businesses that sign up to such a scheme.
Workplace giving programs can help through building partnerships and engagement with business and provide the support, advocacy and opportunities that will promote our organisation’s work.
Workplace giving can help a business to demonstrate community benefit, contribute to corporate social responsibility objectives, build business reputation and profile, and achieve or maintain status as a ‘workplace of choice’. It can also build employee morale and loyalty and develop a corporate culture of giving.
Individual donors benefit from workplace giving by receiving an immediate tax benefit from their wage. This means the donor doesn’t have to wait until their tax return to receive the tax deduction for their donation and will not have to keep receipts for tax purposes. Donations can be automatically made from the donors pre-tax income. There is the added advantage that donors do not feel the money coming out of their pockets – but know that they are regularly supporting the NFP community organisation.
The Office for the Community Sector (OCS) has developed a step-by-step guide for NFP organisations to establish a workplace giving relationship with businesses. The guide provides advice on how to make the most of pre-tax workplace giving and tips on how to develop a mutually beneficial partnership.
The Australian Tax Office has developed a guide that is an easy, practical guide for employers wanting to set up workplace giving. www.ato.gov.au
The Australian Government has developed a workplace giving guide that provides business with information and tools for implementing workplace giving. www.fahcsia.gov.au
If you are interested in establishing a workplace giving partnership or just want more information to consider, please don’t hesitate to contact me through the enquiry form below.
I would appreciate the opportunity to assist.
Chief Executive Officer
Disabled WinterSport Australia