Workplace Giving

We make a living by what we get, but we make a life by what we give.

Winston Churchill

What is it?

Workplace Giving is a powerful yet simple way for an individual and an organisation to contribute in making a real difference within our community. Workplace Giving involves individuals donating directly to a charity from their pre-tax pay.

Workplace Giving is the most cost-effective way to donate to SecondBite. Donations are made in confidence, and individual donor details aren’t required. Instead, employers simply collect from interested staff and pass on a single lump sum.

SecondBite has Deductible Gift Recipient (DGR) status, which means that workplace giving contributions qualify for an immediate tax deduction.

Workplace Giving donations are deducted from pre-tax employee salaries, which means that individual taxable income is reduced.

How is it implemented?

Employer informs staff of an organisation. SecondBite can assist with various information documents and methods.
Employees who wish to donate are asked to commit to making small regular donations by way of payroll deduction.
Employees immediately receive a guaranteed reduction in tax.
Employers may choose to provide a degree of matching donation.
Payroll officer/department collates all of the employees donations each month and sends a cheque with the total amount or transfers the money directly to a nominated SecondBite account.
SecondBite will provide supporters with ongoing communication about the impact of their support through regular newsletters, events, e-mail and intranet posting.

Benefits to employees

For employees, Workplace Giving enables affordable giving through a transparent and trustworthy program. Employees are able to make donations in an efficient and tax-effective manner, eliminating the need to collect receipts or wait until the end of the year to claim a tax refund.

A Workplace Giving arrangement does not affect an employee’s gross income or other calculations, such as superannuation guarantee payments or fringe benefits (FBT), but the tax benefits of the tax deductible donation are immediately realised.

Tax benefits

In a pre-tax Workplace Giving system, you will have already received the tax benefit throughout the year for your donation. The amount you have donated will be reported on your payment summary under ‘Workplace Giving’. It’s an easy way to give.

Donations are spread over the course of a year rather than making a larger one-off donation.
Employers deduct donations from base salaries before deducting tax, the tax benefit to the individual is immediate.
There is no need to worry about keeping receipts, nor a need to have to wait until the end of the financial year to obtain a tax benefit.

How much will my regular donation cost?

Employee donation per week pre-tax pay	Reduction in take home pay per week	Annual cost to the employee pre-tax	Annual donation to SecondBite
$2.50	$1.41	$73.45	$130.00
$10.00	$5.65	$293.80	$520.00
$20.00	$11.30	$587.60	$1,040.00

Indicative tax savings

Salary	Fortnightly pay	Estimated tax	$5 donation tax saving	$15 donation tax saving	$20 donation tax saving
$25,000–$50,000	$958–$1,916	$102–$366	$2	$4	$6
$55,000–$65,000	$2,108–$2,492	$432–$556	$2	$6	$8
$90,000	$3,450	$896	$4	$8	$10

Tax scales used are based on the ‘Fortnightly tax table’, effective from 1 July 2008.

Benefits to employers

For employers, Workplace Giving contributes to an overall feeling of corporate social responsibility. This in turn can enhance staff loyalty and morale along with increasing your organisational profile and public perception that this company is a good place to work. Workplace Giving also provides the company engagement with the community through supporting initiatives.

Workplace Giving provides employers with a low-cost and administratively simple way to support employee engagement in the community.
Assist in realising components of your organisational Corporate Social Responsibility (CSR) policy.
Contribute to staff morale and allows for an avenue to contribute to a truly worthwhile and meaningful cause.
Unlock and mobilise significant funding and volunteer resources to engage with and benefit the community initiatives.

Where do you start?

SecondBite can assist you in the implementation of a Workplace Giving program every step of the way, from liaising with your payroll department to providing information and opportunities for your staff. For more detailed information, please contact:

William Meeve
wmeeve@ppb.com.au

SecondBite
admin@secondbite.org
Unit 51/50 Lloyd Street
Kensington, Victoria 3031
Telephone: (03) 9376 3800
Fax: (03) 9376 3822

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