Payroll giving is a process, whereby employees may choose to donate to a chosen charity which is automatically deducted from their pay. The benefit to them is that the donation tax credit, normally refunded to them annually after the end of the tax year, is automatically paid to them through a deduction in the amount of PAYE taken from their pay. Meaning no need to hold receipts or make claims and the 33% tax credit comes back to them instantly (a $10 donation only costs them $6.67 in their net pay). Most payroll systems in New Zealand handle this automatically without any manual intervention with a special deduction type for payroll giving. Employers are the only ones that can process donation tax credits on behalf of their employees through this method.

More and more customers, suppliers and employees are looking at how businesses support the communities they live in - being able to tell a positive story that doesn't create undue effort to maintain and bring to life is a real positive. If you are looking for research about this check out J.B. Were's Corporate Support Report of 2022. There is also lots of research about employee wellbeing being improved by giving - "helpers high" is a real thing. By paying our admin fee, or a portion of it, (currently 10%) you are ensuring the maximum donation goes directly to employees chosen charity. If you can manage it, donation matching has also been reported to directly increase donor participation. And we can provide you with comprehensive reporting to show you the charities your employees are passionate about.

Payroll-giving is the most tax effective way to donate to charities, however it has low take-up in New Zealand presently due to the administration of it by payroll teams. Vetting of charities, transfer of funds to all chosen charities, change requests etc. At Donorbees all that is needed by an employer is for Donor Bees Trust to be setup in payroll as the chosen charity and each payday giving deduction funds are paid to us. We automatically direct these funds to Donorbees accounts and then any actual charity donations are decided by employees - any amount, to any charity, at any time. So we are handling the admin that would normally be done by payroll teams under the pre-Donorbees payroll giving model.

Providing your payroll system has a payroll-giving feature, then all that is needed is for Donor Bees Trust to be recorded into your payroll system as the Charity employees can donate to. Employees can register and complete a giving request which is automatically directed to your payroll team for actioning. Your payroll team set up a Donor Bees Trust as a payroll payment being the total of all payroll giving deductions made by donors, and send us a summary report so we know who's giving wallets we deposit the funds to. When they are ready, they log in and distribute donations to charities of their choice.

Just give us a buzz - email or phone call. We will put together a Getting Started pack which will include specific payroll instructions on how to set up the deduction type; email templates to communicate with your employees and a draft giving policy if you need one.

It won't add complexity. There may be another step in your process of your regular payrun which is to send us a report. Depending on your payroll system, this may be able to be automated.

At Donorbees we do payroll giving differently so forget about the admin woes of the past. When an employee signs up, then there is the requirement to set up their deduction to Donor Bees Trust. You don't need to worry about a long charity list and lots of transactions to manage. Your payroll system will handle the donation tax credit and PAYE adjustment. Each payday Donorbees will receive the total deductions and there will be a need to run a report and send it to us - some payroll systems automate this. Change requests from employees is limited to changing the amount only - so we recommend to new Donorbees to set it at a level where change is not likely to happen - maybe once a year. Some payroll systems allow employees access through a employee app to be able to change their deduction amount without payroll involvement.

This is totally up to you. Its free to set-up. Your organisation can choose to contribute to our 10% administration fee - totally your choice 0%-100%. If you pay the entire fee it means the full donation amount is paid to charities. Any shortfall is deducted from the donation before being passed on.

Full payment of our 10% administration fee will provide you with comprehensive CSR reporting (anonymised) covering areas such as distribution of donations, by charity, by cause; average donation size; total donations to date; %age of employee population participating etc. This reporting will be in a format that can be used in any public forum - customers, suppliers, charities and employees.

No there is nothing needed technically to get started. We use a feature already present in your payroll system called a payroll giving deduction type which handles all of the donation tax credit calculations and ensures your Employer pay schedule that goes to the IRD correctly accounts for the PAYE reduction and showing donation tax credit payments.