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It is an easy and unique way for people to give to charity. Deductions are made from your payroll from gross pay i.e. before tax is calculated (similar to making contributions to your pension). This means that every pound that is donated will cost only 78p (60p for higher rate tax payers).
e.g. If you decide to donate £10 per month, the complete £10 will be forwarded to the charity but only £7.80 will be deducted from your payroll.
The deducted money is sent, by your employer, to an Inland Revenue approved collection agency (e.g.) South West Charitable Giving – SWCG or Charities Aid Foundation – CAF) and they distribute the money they receive to the named charities.
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