Payroll Deduction Programs: The Easy Way to Give

Donating to charities through payroll deduction programs is one of the easiest ways to give to charities. Payroll deductions offer advantages to employers, charities, and employees. Payroll deductions create win-win situations for employers, employees, charities, and the community.

Advantages for Employers

Payroll deductions programs are a way employers can be more socially responsible. The program makes organizations important members of a community. The program helps organizations build teamwork, community, and achievement within the company. Payroll deduction programs can help improve employee morale and make organizations better places for employees to come to work.

Advantages to Charities

Payroll deduction donations are not the biggest donations a charity will receive. However, payroll deduction donations are regularly scheduled and provide a steady, repeatable income for non-profits. Often employers will match donations so charities benefit by having these donations matched. Many payroll deduction programs include fairs or rallies where employees can learn more about charities. These interactions allow the charity to gain more awareness in the community.

Advantages to Participants

Payroll deduction programs allow participants to make easy regularly scheduled donations to charities. The donations are taken out before the participant receives their paycheck. They never see the money so in essence they do not miss it. The money is not accidentally spent on other things. Matching programs allow participants to feel their donations are doing more for charities. The deductions can be tax deductible at the end of the year providing tax benefits to participants. (Always check with your tax advisor to make sure.) Participating in payroll deduction is easy. Select a charity, select donation amount, and submit once to participate all year. It also gives participants to learn more about non-profits at themed fairs and rallies. Employees can discover new charities to help. Living in these uncertain economic times, employees can find out about non-profits who can help them, their neighbors, friends, and loved ones.

Sources:

Personal experience