GAYE: incidental charity

27 05 2011

I was very pleased to read that David Cameron is supporting the roll out of charitable donations via PAYE; I call it “Give as you earn.”  I’ve been a supporter of this idea for several years now as I find the main objection to charity isn’t the amounts involved, but the hassle (opportunity cost) of signing up.  People have money, but they don’t have time.  I am of the general opinion that instead of bewailing people’s lack of consideration for one another, they should focus on how to get the most out of people the way they already are.  People are busy, they don’t necessarily want to know, they don’t want to be stopped in the street.  But they do want to help, if it’s not too much trouble.  Some might find that cynical, but I don’t see the problem with it- there are ways of leveraging that human nature to the advantage of millions of people in need.

Equally, I’m sure that for many people, giving to charity seems like it won’t achieve much.  The Oxfam “£2/month or whatever you can” ads certainly had a strong impact on me as a child, although whether that was the awesome music is another question.  Nonetheless, it’s getting people to buy in to the idea that if we all just give a little, just a little, then on aggregate that’s a huge difference.

I would like to see by law, in every PAYE contract, a tick box granting 1% of your salary (or 0.5%) to a standard group or a rotating group of 5 star charities each month (or a given charity of your choice).   1% of net income (i.e. after tax) is, for reference, £10/month to someone earning £1000/month.  In 2010 UK GDP was £1474bn; 1% of that would be £14.7bn/year.

Charities received £52bn in 2009/2010 [source – The UK charitable sector: a snapshot,], so we’re talking about increasing their income by almost 30%.  So 1% gives 30%, and all it would require is a change to employee contract law to include a tick box.

For reference, I’m already signed up to a scheme of this kind, via Bell Fundraising.  In order to run a scheme, a company needs to have an agreement with a PGA (Payroll Giving Agency), there are 3 main PGAs who all offer a similar service, CAF, Charities Trust and Charitable Giving.  If you’re reading this whether it’s as an employer or employee, I sincerely ask that you at least consider either signing on to this or a similar scheme, or emailing your colleagues and managers and asking that they do so.

This is a small change that makes a big difference, we’re talking about 1% less for you and me meaning 30% more for those in need.  As a Liberal, forcing people to give isn’t charity, it’s theft; but not including the option to give seems like indifference to the point of cruelty.




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