Cancer Society of New Zealand

Payroll giving

As an individual employee you may have asked your company to direct a regular deduction from your salary to the Cancer Society, or your company may have a staff foundation that directs a collective fund to the Cancer Society.

Now, after being successfully introduced overseas, workplace giving (also known as payroll giving) has become a very beneficial method of making a regular donation. Supported by the Government in order to advance New Zealand's charitable giving culture, Budget 07 created new tax laws to make payroll giving easier. 

For Employees

For Employers

How to Start Workplace Giving

 

For Employees

• Workplace giving makes donating to the Cancer Society straightforward by eliminating the need to retain receipts each time, or to have to request and file rebate claims.
• The donation is taken out of the salary before tax.
• Participation is completely voluntary.
• By way of encouragement, employers may match employee donations dollar for dollar with a cap.
• Overseas programmes report boosts in staff morale and benefits felt in the community.
• You can help the Cancer Society by leading the initiative to get a workplace giving programme started at your place of work and by joining a payroll giving committee.  

 

For Employers

• Workplace giving to the Cancer Society is a low-cost and administratively simple way to support employee morale and enable businesses to connect with their communities in ways that achieve tangible and mutual benefits for everyone involved.  
• Businesses can encourage events that allow employees to interact with the Cancer Society including the launch of the payroll giving programme and related media or public exercises.
• The company's involvement can be extended to supporting employee volunteering and fundraising opportunities.  

The regular donation is taken out of the salary before tax and provides "real-time, tax relief reflected in normal pay, based on the amount donated".1

"New Zealanders gave $1.27 billion to philanthropic causes in 2005".2

References: 1,2: Policy Advice Division of Inland Revenue Department (Nov 2007).
Payroll Giving: providing a real-time benefit for charitable giving, Inland Revenue Department, New Zealand. 

The Cancer Society maintains strict confidentiality. The company and its staff can be acknowledged and kept up-to-date with the impact that donations make.

How to Start up Workplace Giving

Step 1.

Signing a pledge

The employees complete and sign a pledge form to begin workplace giving specifying the amount they wish to give. The amount donated is taken out of the salary before the salary is taxed. The details are coded into the payroll system.

Step 2.

Funds transfer

Each pay period the employer remits the employee donation to the Cancer Society in their area. This will be remitted as a single amount, representing the combined donations from their employees. Employers retain a record of the donations made by each employee throughout the year. The Cancer Society will be provided with the contact details of each employee, but will not contact individual employees except as agreed (see below).

Step 3.

Acknowledgement

The Cancer Society issues a single acknowledgement receipt to the employer for the funds received from that pay period.

Step 4.

Annual Receipt

At the completion of the tax year the Cancer Society provides each employee with a receipt detailing the donations made through the tax year, an acknowledgement, and details of what was achieved that year with their donations.

The Cancer Society undertakes that:

• The names of all of the participants shall remain confidential. Employees names will not be added to the Cancer Society mailing lists unless instructed.
• During the course of the year the Cancer Society will thank the staff and the company by sending acknowledgements advising the impact that donations make.
• All communications for employees will be coordinated through the key contact, the Workplace Giving Programme Manager.
• Information about a company programme is confidential between the Workplace Giving Programme Manager, designated company representatives and Cancer Society representatives.
• Any material that is promotional in nature to either the Cancer Society or to the company must be signed off prior to its release, subject to mutual agreement with the Cancer Society.

The company undertakes to:

• Apoint a Workplace Giving Programme Manager (most likely from HR staff).
• To convene a committee of employee volunteers to maintain ideas and support to grow the programme.
• To help induct new employees and to provide content for related materials on websites or newsletters.

For more information on payroll giving read Payroll Giving: providing a real-time benefit for charitable giving written by the Policy Advice Division of Inland Revenue Department (Nov 2007) New Zealand.