Donating made easy – payroll giving

Hon Tariana Turia
Minister for the Community and Voluntary Sector

Hon Peter Dunne
Minister of Revenue

16 November 2009

Donating made easy – payroll giving

The Minister for the Community and Voluntary Sector Tariana Turia and Revenue Minister Peter Dunne are asking employers, employees and community organisations to `give as you earn’ through payroll giving.

The Government has introduced Payroll Giving so it is easier for employees to donate to community organisations such as schools, charities, and churches directly from their pay and receive a tax credit. For every dollar donated, an employee will receive a third of it back in the same pay period.

This week, over 170,000 employers will have received an information pack on how they can offer payroll giving to employees from 7 January 2010.

“Community groups depend on donations to do the good work that they do whether it is cleaning up local waterways, keeping families safe, or supporting our Pacific neighbours to get their country back on its feet.

“The more we can give by steady, committed donations to organisations, the more they have financial certainty to support our communities,” said Minister Turia.
In 2007, over 1.2 million people made ongoing donations. Of these people, almost 800,000 were in paid employment.

“I encourage employers and employees to investigate Payroll Giving,” said Minister Turia.

Minister Dunne said he was delighted by the change and said it was a key way of allowing New Zealanders' renowned generosity be properly and officially channelled.

"I've been pushing for this for a considerable time. It really does make sense," he said.

The Government has also simplified the reimbursement of volunteer expenses and payment of honoraria, making reimbursements tax exempt. This will reduce tax and compliance costs for voluntary organisations and volunteers.

Community organisations wanting to receive donations from payroll giving must register as a donee organisation with Inland Revenue.

Further information: http://www.ird.govt.nz/news-updates/campaign-payroll-giving.html

ENDS