Scheme Details

Background

29 years of Payroll Giving in the United Kingdom has resulted in over £100 million per annum being donated to charity and exemplifies the value of regular giving by loyal donors.

As an HMRC-Approved Payroll Giving Agency since 1987, Charitable Giving has capitalized on the opportunity to promote a similar scheme, but with deductions from net pay instead of gross pay, in the Republic of Ireland.

And so, the Sustain scheme was born!

Details

The purpose of Sustain is to enable employees of employers in the Republic of Ireland to donate regularly in euros from their net pay to charities of their choice thus ensuring a reliable and regular income stream for charity beneficiaries.

Operation

Operating the Sustain scheme is easy, the first step being for the employer to sign a contract with Charitable Giving to administer the scheme on their behalf, available in the Sustain: Employer's Pack on the Downloads page.

After promotion, employees complete a mandate to subscribe to the scheme, detailing the amount to be deducted from their net pay and the amounts to be distributed to their elected charities. The minimum deduction is €1.50 per week or €6.00 per month. Data from the mandates are sent to the employer to enable deductions from the payroll, and also to Charitable Giving who will distribute the funds to the selected charities.

Deductions from net pay, accompanied by a list of donors and contributions, should be sent electronically to arrive at Charitable Giving by the 14th of the month following the month in which the deductions were made. Details of this process are contained in the information sheet, Sustain: Sending Net Pay Deductions, available from the Downloads page.

After processing, funds are distributed to charities during the first 10 working days of the month following receipt of the deductions

Administration

To process each monthly contribution, an administration fee of 5% of the contribution, capped at a maximum of €12.50, is charged.

Unless an employer elects to pay the fee on behalf of its employees, the fee is deducted from each contribution before the balance of funds is distributed to charity.

Beneficiaries

Provided that funds can be distributed in euros, donors may elect to give to as many charities or charitable organisations as they wish.

Sustain’s website offers the opportunity for charities to advertise their interest and support of the scheme on the "carousel". In addition, charities can obtain monthly reports of donations for a nominal annual charge. For more details, contact us via sustain@charitablegiving.ie.

Charities interested in receiving donations through Sustain are invited to send their bank details to us by completing the Charity Bank Details form available from the Downloads page

Tax Relief

Donations may qualify for tax relief provided the following conditions are met:

  • Donations are made to "eligible charities and approved bodies" within the Republic of Ireland
  • Donations to any one charity must be €250 or greater in the tax year by donors resident in the State
  • Donors must have paid Income Tax/Capital Gains tax of an amount equal to the Income Tax/Capital Gains tax on the grossed up amount of the donation; for example, €125 at the standard rate of 20% if the donation was €500, the grossed up amount being €625, or €500/0.08.
  • Tax relief will be limited to 10% of the total income of donors directly associated with the charity to which the donation has been made
  • Donors who pay tax under the PAYE tax system ONLY should complete a CHY4 Cert available from the Downloads page
  • Donors should send their CHY4 Cert to the relevant charity who will subsequently claim the tax relief due
  • Donors who are self-assessed and who may also pay tax under the PAYE system should claim tax relief in his/her own Self-Assessment tax return (and not complete a CHY4 Cert)

For more details, visit www.revenue.ie or email charityclaims@revenue.ie

Charitable Giving SUSTAIN is a scheme, exclusive to the Republic of Ireland, administered by Charitable Giving (UK Registered Charity No 1128013) The scheme enables employees to donate regularly in euros from their net pay to charities of their choice.
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