A generous statistic on Giving Tuesday – increase in payroll giving

On Giving Tuesday, new statistics show a jump in Kiwis giving regularly via payroll in the last financial year.

Inland Revenue figures given to Philanthropy New Zealand | Tōpūtanga Tuku Aroha o Aotearoa (PNZ) show that over $60 million dollars of charitable donations has been given in the ten years payroll giving has been available in Aotearoa New Zealand.

PNZ Sue McCabe said that the total amount donated has increased over time from over $2.1 million in the first financial year ending 2011 to over $6.9 million in the financial year ending 2020. 

“While giving amounts have stayed reasonably static from 2015-2019, it looks like 2020-21 may have been a bumper year with provisional figures estimating payroll giving as being over $9.9 million.”

The JB Were Support Report, produced in 2019 in collaboration with PNZ, estimated 3.8b was given in philanthropic funding in 2018.

“So payroll giving accounts for a small, but important, type of giving in Aotearora New Zealand. Payroll giving is important as it provides a regular income for charities, so they can budget on it. Generally charities can choose what they can spend donations via payroll giving on, meaning this type of funding is flexible and therefore valuable to a community organisation.”

“On Giving Tuesday*, we encourage every New Zealander to think about payroll giving who is in a position to. It doesn’t need to be much, as every little bit counts for many of our not for profits carrying out important work in our communities.”

We cannot tell from the data that we have the reason for the increase in payroll giving in the 2020-2021 year.

“This does coincide with the advent of Covid-19 in our country, so we’d like to think that in the face of Kiwis becoming aware of the increased community need, they opened their wallets. There isn’t much data collected around giving levels, so we do look at pieces of the jigsaw puzzle to help us assess how much philanthropic funding has been impacted by Covid. We do know from previous events like the terrorist shootings in Christchurch and the Canterbury earthquakes – that Kiwis given generously in a time of need.

*Giving Tuesday is the Tuesday that falls after black Friday and is a day that encourages people to give, collaborate, and celebrate generosity.

How does it help our communities?

ANZ is one of New Zealand's leaders in payroll giving, with almost 2,000 staff donating regular amounts from their after-tax salaries and wages. ANZ matches these contributions at a rate of $2 for every $1 donated by staff with all funds going to its charitable trust, the ANZ New Zealand Staff Foundation.

Find out how ANZ’s payroll giving is making a difference to communities.

What is payroll giving?

Payroll Giving allows employers to deduct donations from workers’ pay and reduce their PAYE tax by the appropriate tax credit and send the donation to selected charities.

Through the payroll giving scheme employers allow their staff to donate to Inland Revenue approved charities through their organisations payroll system. Once set up, this quick and easy donation gives regularly to the worker’syour chosen charity while automatically redeeming their your tax credit in the process – which is 33.33% of the donation amount.

It’s a seamless way for employees to donate while automatically redeeming their tax credit in the process. It’s also a great, low-cost way for charities who often have stretched resources to  fundraise.

One of the original intentions of the scheme is that it also could create closer links between businesses and the community, while supporting employees’ community activities.