Five major charities have launched the UK’s first 100 per cent voluntary sector-owned payroll giving system after more than a year of development.
The aim of GoodPaye is to raise £150m for charities by 2030, by “making workplace giving more impactful and more accessible to employees, employers, and charities”.
The venture between Barnardo’s, Crisis, The Royal British Legion, RNIB and WaterAid, with the support of consultancy Good Innovation and led by digital entrepreneur Richard Packman, aims to double the number of UK payroll givers by 2030.
A spokesman for GoodPaye said: “GoodPaye has taken a tech-led approach to simplify and improve what has historically been viewed as an overly complicated and inefficient system.
“Payroll giving was introduced in the UK in 1987 but is still operated today much like it was 35 years ago.”
The spokesman added: “By using the latest technology and developing a user experience usually seen in the fintech and ecommerce worlds, GoodPaye is bringing payroll giving into the 21st century.”
Packman, GoodPaye managing director, said: “Payroll giving has the potential to create a huge positive impact in the world.
“It’s vastly underutilised and often misunderstood, not helped by the lack of awareness and an overly complicated legacy system.
“We’re bringing much-needed innovation and disruption to the market, empowering employees to help support numerous worthwhile causes while they’re at work and enabling their donations to work as hard as they do.”
GoodPaye said it had partnered PayCaptain.org, a tech-led, HMRC-approved payroll giving agency, to provide employers with an all-in-one system, with no fees to employers or their employees.
Tara Honeywell, head of commercial ventures at Barnardo’s and chair at GoodPaye, said: “By exploring new ways to grow untapped markets and raise awareness of the tax benefits people can realise through giving through their payroll, all via a super-seamless user experience, we hope to drive more income into the sector and in turn, deliver more impact.”
Several companies have already signed up to the system.