Participating employers deduct agreed sums of money from their employees' pay before tax calculation and forward the funds to a payroll giving agency.
Payroll giving is operated by several agencies which do the administration and processing to link the donations to the correct charities.
Payroll Giving is promoted within workplaces by a number of Professional Fundraising Organizations or charities.
Employers with high participation rates can win Bronze, Silver and Gold awards from the Government.
Charities recognized by HMRC[4] benefit from receiving tax-free donations through Payroll Giving, and in some cases matched by employees.