TrainingandSupportDecJanarchive2010

Is raising funds for your group a constant battle? Are you running out of new ways to approach your community for money? You are not alone!

Many charitable organisations are struggling in the current financial climate, however the Office for the Community and Voluntary Sector (OCVS) have offered a lifeline in the form of a new Payroll Giving scheme.

This unique opportunity could help take some of the stress out of fundraising, so make sure you learn how to make the most of it.

Payroll Giving provides employees with the option to ‘give as you earn’ by make donations to their chosen community organisation directly from their pay. A person’s employer must be signed up to the scheme which will be administered through the PAYE tax system. A real benefit to those that sign up is they will receive the tax benefits of their donations each pay day, without having to save their donation receipts for a claim at the end of the tax year.

This proposal, available from 7 January 2010, is an easy way for employees to get in behind their favourite voluntary cause. From this date businesses and employees can sign up to the system, and charitable organisations will start to reap the benefits.

Over 170,000 employers were sent an information pack on how they can offer payroll giving to their employees, according to the Minister for the Community and Voluntary Sector, Tariana Turia.

“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.

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

Payroll Giving is a no-pressure initiative where employers can choose whether they want their workplace to be involved, and employees can choose whether they want to participate.

The Government have also simplified the reimbursement of volunteer expenses and payment of honoraria by making reimbursements tax exempt. This is great news for volunteer groups and organisations as it will reduce tax and compliance costs.

So do your homework, find out about these changes and get your name on the donee list!

If your group has approved donee status with Inland Revenue, they are one of almost 18,000 organisations nationwide who are already eligible for Payroll Giving.

If not, you will need to be approved as a donee organisation by Inland Revenue. When you register as a charity with the Charities Commission, and indicate that donations are a source of income on the application form, this information will automatically be passed onto Inland Revenue and you will be considered for donee organisation status.

However, in most cases, donations to organisations that apply the majority of their funds overseas will not qualify.

Make sure your organisation’s details, including your legal name and bank account number is easily accessible. Maybe even look at adding them to newsletters and brochures, or putting them in a prominent place on your website.

Check the Inland Revenue website to see how your organisation’s name appears on the donee list. This will mean you can direct people to your listing easily – and with almost 18,000 organisations on the list this is very important if you want your group to stand out!

State schools or state integrated schools, along with their boards of trustees, do not have to be approved to have donee organisation status. However, only certain payments will qualify for a tax credit/deduction. If your group falls into this category, the Inland Revenue website will be able to provide more information.

Inform members of your community about Payroll Giving, and how they can get involved. Resources to promote the scheme are now available from Inland Revenue, and the OCVS will be working with a range of community organisations offer guidance and to “spread the word”. Make sure you use these resources, as the more groundwork you do at the start, the more likely it is that you will see some return.

Take note that receipts should be in the name of the employer’s business and must clearly state that the donation was made by payroll giving.

Let us know of your group’s suggestions or experiences with Payroll Giving, or any other topics or articles discussed on our Training and Support page. Just drop us a line at communityconnect@trustpower.co.nz.

Full details on the Payroll Giving scheme can be found on Inland Revenue’s website, www.ird.govt.nz.