UK taxpayers who are paid under PAYE (Pay As You Earn) can maximise regular donations to the University through the Payroll Giving scheme. Gifts made through Payroll Giving are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify.
See below the answers to commonly asked questions regarding payroll giving.
Payroll giving is an easy, tax-effective way to give, so it costs you less to give more. Payroll giving provides a regular, reliable income stream which will allow the university to plan ahead and budget for the future in terms of its fundraising priorities.
Unlike Gift Aid, all the tax relief is given to the donor. The donation is simply a pre-tax deduction, reducing the amount of income tax taken from the donor's pay. This means the donor gets immediate tax relief at their highest rate of tax. So a £10 donation would generate tax relief of £4 for higher rate tax payers and £2.20 for basic rate tax payers.
See example table below
| Employee donation received by Cumbria Futures Fund* |
Basic rate taxpayer (22%) tax) | Higher rate taxpayer 40% tax) | ||
| Tax relief | Cost to donor | Tax relief | Cost to donor | |
| £5 per month | £1.10 | £3.90 | £2.00 | £3.00 |
| £10 per month | £2.20 | £7.80 | £4.00 | £6.00 |
| £20 per month | £4.40 | £15.60 | £8.00 | £12.00 |
| £100 per month | £22.00 | £78.00 | £40.00 | £60.00 |
| £200 per month | £44.00 | £156.00 | £80.00 | £140.00 |
*Cumbria Futures Fund is the University’s Fund through which all philanthropic giving is managed.
Complete the Give As You Earn Donor Instruction form detailing your wishes to donate to the University of Cumbria. Your employer will forward your completed form to their Payroll Giving Agency (PGA) and deduct from your pre-tax salary the total amount you want to give. Your donation is forwarded monthly to the Payroll Giving Agency and they then distribute the gift each month to the University.
Once you have pledged your tax effective donation, please forward your completed form to Payroll Manager, University of Cumbria, Bowerham Road, Lancaster, LA1 3JD.
The Payroll Giving Agency for the University of Cumbria is ‘Charities Aid Foundation’.
The entry on your payslip will be shown as ‘UOC Give as’ in the Deductions column.
Payroll Giving is a voluntary donation and you can stop at any time by informing The Payroll Manager.
Most PGAs make a small charge which they deduct from your donations before distributing them to the University. The charge is nominal and simply covers their costs. All Payroll Giving Agencies are registered charities and they make no profit from administering Payroll Giving donations. An increasing number of employers pay the Payroll Giving Agencies charges so that the full amount of your donation can go to charity.
Once your donation has been deducted from your salary your employer must forward it to the Payroll Giving Agency each month. The Payroll Giving Agency then has 60 days to distribute the gift to the University. Most Payroll Giving Agency’s distribute funds within one month. Once we have received your donation you will be sent an acknowledgment letter from the Development and Alumni Relations Manager.
Yes, although to keep administration costs down we will limit the number of times you can change the amount of your donation to once a year.
