Get started now!
No set-up fees and you determine your contribution to administration costs - 0-10%
Payroll Giving/Workplace Giving explained
What is Payroll Giving?
Payroll giving or Workplace giving as it is often known, is a method of donating to charities through a deduction from your pay. Depending on how an employer chooses to implement it determines how an employee may use it.
The main advantage of donating to charity in this way is that an employer is authorised by the IRD to pay their employee the relevant donation tax credit which is 33.33% of the donation. This means that if an employee makes a (for example) $30 donation to charity from their pay, the net cost from their pay is only $20 and they don't have to manage receipts or tax credit claims at the end of the financial year.
How did it work before Donorbees?
This was often determined by employer policy because an employer is responsible for:
- Ensuring a charity is Donee registered (registered with the IRD to accept donations)
- That the donated funds reach the charity in a timely manner (within 90 days of deduction from pay)
- The Employer Pay summary sent to the IRD must clearly show the PAYE and Donation tax credit adjustments for each employee
Due to these rules an employer would often limit the charity list available to employees to donate money and have a policy around when changes to amounts or charities can be made and how often.
Donorbees does it better
Employers don't need to limit or manage a charity list. Donorbees is a Donee registered charity therefore the payroll giving deduction only needs to register a single charity - Donor Bees Trust, and a single amount each payday to be onforwarded. We remove all of the compliance and major admin from the Employer.
Employees don't need to choose a single charity. Just decide on the amount they wish to donate and each payday this amount will be deposited in to their personal Giving Wallet at Donorbees. Explore our 250+ charities and donate any amount at any time to any charity on our platform, up to the value of their wallet. All donations are anonymous both to the employer and the charities. Personal choices with ultimate flexibility.
Payroll giving is the ultimate workforce and community initiative."
Pip Youngman, Donorbees Founder
Only employers can unlock this.
Donations to qualifying charities earn tax credits for the Donor.
Each dollar you donate earns you 0.33c back from the PAYE tax you have paid. Employers calculate your PAYE each payday and send it to the IRD so they are authorised by the government to pay you the tax credits on your donations done via workplace/payroll giving by reducing the amount of PAYE they send. Donating outside a payroll giving process means keeping your receipts and making a claim once a year. And lots of people don't claim what they are entitled to - an estimated $60m goes unclaimed annually. We are here to change that!
Employers win
Show how you give back, not just say it. The strongest stories are driven by the actions of your people. You get a genuine, people-led giving story you can share with confidence. And it takes minutes to set up - no project plan.
Read moreDonors win
Flexibility to donate to personal causes without organisational oversight. Immediate tax back to allow for recycling in any way you choose and no receipts or admin at year end.
Read moreCharities win
A very cost effective method of fundraising. Donorbees workplace/payroll giving shows higher workforce participation, providing greater opportunity for a charity to be one of choice rather than having to lobby organisations individually to be on the chosen list.
Read more0
profiled charities
0
validated charities
0
% average cost to a charity
It's as easy as.....
1
Sign up and set your contribution
-
Sign our simple agreement - Plain language terms. We handle all administration. Cancel or adjust at any time.
-
Decide on your organisation's level of contribution to our administration fees 0-100% of the 10% fee.
- Configure a Donor Bees Trust payroll giving deduction - a five minute activity. We have a library of setup actions for most New Zealand compliant payroll systems which is provided in your Getting Started pack.
2
Educate and inform your staff
Email 1: Explain the benefits of payroll giving as a way of donating to charity and the unique Donorbees approach.
Email 2: Get them started and help them register with the unique URL for your organisation's payroll giving.
We have templates to get you started.
3
Becomes part of automated payday processing
Payday processing deposits your employee's chosen amounts into individual Donorbees Giving Wallets. All donation decisions are made by employees within our secure platform and transactions to charities managed by Donorbees. We use a feature already present in your payroll system and it complies with New Zealand Tax law in relation to Donation Tax Credits.
CSR reporting available at a level commensurate with contribution level of administration costs.
Questions & Answers
How do we know that Donor Bees Trust is authorised to accept donations?
An employer must ensure that the Charity to where funds are being donated to are Donee registered. You can check us out easily here: https://www.ird.govt.nz/income-tax/income-tax-for-individuals/individual-tax-credits/donation-tax-credits/approved-donee-organisations
How do we know that the donations make it to the charities that our employees choose?
We have vigorous reporting requirements to our Trustee Board which shows full details of our donation cash flow and we reconcile all of our records daily. If a contribution is made to our administration costs, we are able to provide reporting to employers to show the destination of donated funds. This is donor anonymised reporting.
When are the donations forwarded to charities?
To keep the administration burden under control, we consolidate all donations by donors at the end of each calendar month and pay a lump sum to each chosen charity.
How often does the organisation have to forward funds to Donorbees?
The law states that funds needs to be forwarded to charities within 90 days of being deducted from an employees pay, however using Donorbees our agreement with you states you must forward funds each payday. This is because the employee will want to see the funds reach their Giving Wallet as soon as possible after it has been taken from their account, so that they are able to make donation decisions when they are ready.
Can the organisation do donation matching?
Yes. This can come in may forms: exact matching both in charity and amount; set amounts to a limited list of charities and anything in between. We work with you to arrive at the structure that works best for what you are wanting to achieve.
What type of reporting is provided?
A full CSR report showing all available metrics, charity donation lists, workforce participation, distribution by month etc is produced for all organisations that pay our full administration fee of 10% of donations. This reporting is scaled back as the administration fee coverage is scaled back. All reporting is anonymised to ensure individual donors and their activity are not identifiable
How can an employee or an organisation cancel their participation in Donorbees?
Whilst we would hate to see anyone leave, we have a process. For donors, they can simply cancel their payroll giving deduction by informing their payroll team. For employers, in line with your agreement with us, you need to give us one months notice of cancellation.
What happens if an employee leaves?
Once a person is a Donorbees member, if they leave their current employer they can still access their Donorbees account. If they join another employer that has a Donorbees payroll giving initiative, they can simply join their programme and keep their same account. This ensures continuity of their donation history.
How do I know my payroll system can do payroll giving?
If someone in your payroll team knows the system well - then a search of support documents will likely tell you. Payroll-giving is a special deduction type that does all the calculations for you - adjusting PAYE figures and making sure it all shows correctly in Employer payroll statements sent to the IRD. Check out our list we have compiled here: https://donorbees.org.nz/employers