Did you know that June is National Workplace Giving Month?
The end of the financial year is an ideal time to promote Workplace Giving as many of us make donations at this time. Providing the opportunity to do this directly from their pay allows employees to make their donation in the most tax effective and efficient way possible.
As an employer you can set up a workplace giving program and offer for your employees to participate. Workplace giving is an optional, but simple and effective way for employees to regularly donate to charities or organisations that are entitled to receive tax deductible donations.
“To attract the best talent, people want to work for companies who care and who are socially responsible.” ~ Kathleen McCudden, Human Resources Director of SEEK*
To incentivise participation, employers can also opt to match the gifts that your employees contribute, benefiting from a greater social impact and reputation . Young Australians in particular want to work for ethical companies, and almost half (42%) want to work for an organisation that will have a positive impact on the world. Young Australians will also favour one employer over another if they offer workplace giving .
Millennials, in general, are community-oriented and have a social conscience. They want to work for a meaningful purpose and are attracted to companies that give back to the community and engage their employees through giving related opportunities. Companies who recognise the values of millenialls and who provide a workplace giving option enjoy greater staff engagement, retention & productivity . This should be an important consideration for employers, as baby boomers retire & millennials quickly take over as the largest population in the workforce. Visit the ATO website to get started on setting up your workplace giving program.
As an employee, what’s in it for you? Firstly, the workplace giving program does not affect the way your gross income, super guarantee payments or fringe benefits are worked out . Workplace giving does offer you an opportunity to contribute a small portion of your pre-tax salary to charity and receive the tax benefit straight away. No more waiting until tax time to reap the financial benefit. For example, say you donate $5/week or $260/year. Depending on your tax rate it may only cost you $162.50 . The charity however receives the full $260 and benefits from receiving a consistent flow of money.
You may be asking, “What if I want to choose the charity I want to support?” The short answer is, you can choose to support any participating charity that has ongoing deductible gift recipient (DGR) status. Your employer and other staff members can discuss your preferences and can agree to add a selection of charities to accommodate individual preferences.
The obvious benefit to charities is the consistent income to fund their projects and services.
If that’s not motivation enough, here are a few key insights to consider if you’re organisations current fundraising plan does not include this valuable option:
1. Workplace Givers are willing to give more as a seasonal gift;
2. 1 in 3 are open to increasing their regular donations each year;
3. 94% want giving to be easy and they feel Workplace Giving is quick and easy; and
4. 73% are very committed to support their charities’ work into the future .
Overall, Workplace Giving is a win-win-win for employers, employees and charities. If you don’t yet offer this option as an employer or benefit as a charity from this motivated and generous sector of givers, then now is the time to consider adding it for the new financial year.
Shop It Forward is motivated by a desire to make a difference and to facilitate a movement of thoughtfulness and generosity. We aim to raise millions of valuable dollars for the causes you care about.