This relatively simple means of raising funds for charity has been very successful in both the United States and the United Kingdom. Employees electing to give a percentage of their wage to selected charities can raise funds for the community service sector. If employers support these workplace-giving programs by matching the donations of their staff, it adds a further dimension of commitment to the scheme and can, in turn, lead to longer-term partnerships.
In the corporate sector, workplace giving is a democratic model through which staff can choose the community group they support. This challenges traditional corporate giving where the community program is decided upon at management level.
Workplace giving programs need not be restricted to large corporations. Participating businesses in the US and UK include small to medium sized enterprises, which find it to be a cost-effective way to join in community giving.
For community service organisations, workplace giving is also a cost-effective way of receiving funds as, typically, only 10% of the donation is spent on administration compared to much higher costs for fundraising tools such as direct mail.
Intermediaries
Currently in Australia, three organisations can assist employers by administering payroll deduction schemes through a single agency. They are Earth Share, OzGive (CAF Australia) and United Way (see Box 8 for contact details). Donors may support any registered charity in Australia and the agencies charge minimal administrative costs at the time of donating (see individual agencies for their administrative fees).
In addition, Australian Charities Fund (ACF), can assist larger organisations to implement workplace deductions through existing payroll systems. No administration fee is involved. ACF also provides training and support required for staff to engage in this type of partnership (contact details in Box 8).
Challenge Bank
Challenge Bank has been involved with United Way for over 10 years as a founding corporate partner, providing assistance through corporate sponsorship, payroll deductions and private donations.
Over an 18 month period, Challenge Bank staff committed to raise $10,000 for Ngala Resource Centre through the United Way deduction scheme. This target was successfully reached in March 1999. Through their 'Matching Gifts Program', the bank doubled the $10,000 to $20,000, and these funds were used to provide toys, teaching aids, an electronic whiteboard and a projector for the centre.
Challenge Bank also provides United Way with access to a warehouse which is used to store recyclable goods such as carpet, furniture and computer equipment to be distributed among various charities across Western Australia.