Also referred to as “Payroll Deduction”, Payroll Giving refers to the process of making a gift to a charity by means of a deduction from the individual donor’s paycheck. Typically, Payroll Giving is part of an Annual Workplace Campaign that occurs in the fall in which employees are encouraged to give to one or more charities over the next calendar year.
The benefits of Payroll Giving are that the donor signs up once, but the gift is spread out over equal payments via each paycheck. The donor can usually remain anonymous if he or she chooses. And the charity often receives more money than a single gift made via check or online, due to the ability of the donor to give more by spreading out the payments.
United Ways made Payroll Giving popular as early as the 1950s, working with their many corporate partners.