What is workplace giving?
Workplace Giving is an easy way for employees to make regular tax-deductible donations directly from their pay. Workplace Giving can also cover in-kind donations of employees’ time and skills.
How does it work?
1. Employers invite their employees to enter into a Workplace Giving arrangement and provide a list of Deductible Gift Recipients (DGR). (The employer is responsible for confirming each organisation’s DGR status.)
2. Employees who want to take part can nominate their preferred DGR, along with the frequency and amount of their donations. These donations are then made directly to the DGR by the employer.
3. When employers calculate the amount to be withheld from each employee’s salary for a given pay period, they deduct the donation amount from the gross salary before referring to the appropriate tax table.
4. At the end of the tax year, the employer then provides each employee with a confirmation of the donations, so the employee can include it with their tax return. This confirmation can be included on the employee’s payment summary (formerly known as a group certificate), or it can be provided separately in written or electronic form.
The benefits of Workplace Giving
• For charitable organisations like ours Workplace Giving helps provide stable long-term funding for core programs. Plus, with no need for receipts, targeted communications and the expense of attracting a donor, there are few ongoing administrative costs – so more of the donated funds can go where they’ll do the most good.
• For employees Workplace Giving makes giving more affordable and provides a transparent, trustworthy program. This kind of donating is ‘painless’, efficient and tax effective. There’s no need to gather receipts and wait until tax time to claim a refund.
• For employers Workplace Giving is an easy and low cost way to cement employee morale, community partnerships, and marketable goodwill.
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