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Payroll Giving - a whole lot easier to give

 


 

Payroll Giving - a whole lot easier to give

 

For immediate release

 

Philanthropy New Zealand says putting payroll-giving into action in New Zealand workplaces should bring about a stronger culture of giving and generosity.

In welcoming today’s Government announcement on payroll giving, Philanthropy New Zealand’s Executive Director Robyn Scott said giving in a planned manner will now be much easier.  “Payroll Giving means many working New Zealanders will be able to give money to their chosen causes and receive an immediate tax benefit by way of a PAYE credit.

Philanthropy New Zealand is also pleased to see the government has put the review of imputation credits to charities - a long standing anomaly – firmly back on the agenda.

“These initiatives are vital to building better communities. Anything that means New Zealanders are thinking more about their giving and making regular contributions to an organisation doing great work benefits society as a whole.”

Ms Scott says the Giving New Zealand research, released last year by Philanthropy New Zealand, shows there is room for improving our generosity as a nation. Although approx. $1.3 billion dollars was given away in 2005/2006 only 1/3rd of that came from personal donations. The rest is made up from statutory Trusts and Foundations

Warehouse founder and philanthropist, Stephen Tindall has worked to make payroll-giving an easier option for workers.

“It need not be a huge sum of money - but regular contributions build up fast. It provides an immediate tax benefit to employees who choose to give in this way and does not impose unnecessary compliance costs on employers, he says.

Ms Scott says that internationally, payroll-giving schemes have shown to be a simple, convenient and effective way of supporting charities.
“Australia and the United Kingdom have introduced payroll-giving schemes, which have created benefits for the businesses involved as well as the charitable organisations receiving funding,” she says.

Ms Scott points to overseas research, which shows payroll-giving benefits business by:

Boosting their social responsibility profile
Enhancing community involvement programmes
Improving staff recruitment and retention

Another plus in today’s announcement is the clarification of the law relating to the taxation of honoraria for voluntary work and the reimbursement of volunteers’ expenses. Robyn Scott says volunteers are an integral part of New Zealand society, “so it’s great to see the Government working to make life easier for them and the organisations they assist.”

Mr Tindall agrees. “Recognition of the huge contribution volunteers and NGO  boards make to the running of many thousands of community initiatives will make a difference. Changing the treatment of volunteer expense reimbursements like petrol money, and the minimal honoraria some receive in recognition of their time and energy, ensures overdue acknowledgement and may attract more volunteers.  I strongly support every effort to strengthen the culture of charitable giving and volunteering in New Zealand.”

Ms Scott believes individuals and organisations will give more as it becomes even easier to give.“Payroll-giving is one of the tools that motivate people to give to others less fortunate than themselves, that has to be a good thing.”

Ends


 

 

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