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Enhancing Payroll Giving: Options for Reform and Improvement in Charitable Donations System

This presentation, delivered by Gareth Potts of the Cabinet Office, discusses the future of Payroll Giving (PG) and explores various reform options to enhance its effectiveness. It highlights the need for system improvements, aiming to make PG more attractive for charities and donors while comparing it favorably with other forms of giving. The presentation outlines four reform options: improving the existing system, encouraging new PGAs, licensing a single PGA, and centralizing PG infrastructure. Insights into implications for charities are included, inviting feedback and ideas for adoption.

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Enhancing Payroll Giving: Options for Reform and Improvement in Charitable Donations System

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Presentation Transcript

  1. Payroll Giving – some options Presentation to Institute of Fundraising Special Interest Group on Payroll Giving Gareth Potts, Cabinet Office November 1st 2011

  2. Context • Giving White Paper • Need to look at system reform • Making PG something that charities like and want to promote • Making PG something that compares well with over forms of giving • Non-options • Do-nothing • Scrap PG

  3. Option 1 - Improve the existing system • working with existing PGAs to improve performance • tighten existing regulation • reducing the time in which they must process donations • shared contracts • template for data submission to charities • funds to upgrade antiquated systems (e.g. reducing reliance on paper forms).

  4. Option 2 - Encouraging the entrance of a new-look PGA • all the aspects seen in Option 1 • new entrant might offer a donor- and charity-friendly online giving experience • rapid processing of donations • potentially building on their current on-line giving platforms.

  5. Option 3 - License a single PGA (‘Camelot Model’) • HMRC would license a single PGA to operate PG for a set period (e.g. five years) • following a competitive application process • operator would be expected to provide a “total solution” • managing the whole process from donor interface • processing donations

  6. Option 4 - Centralised PG infrastructure • single back end system • processing payments • data/ reporting services for charities • donor and employer-facing elements of the system (e.g. the website through which a donor signs up) could be developed by any number of providers. • similarly large companies could provide customised sites for their employees that linked directly to this back-end infrastructure.

  7. Taking things forward • Where we are at – option consideration / ideas welcome • Implications for charities - invite

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