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Payroll Giving touches new heights, shows GiveIndia data

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June 19, 2014
Business Standard
BS Reporter

125-plus companies and 50,000 active employees had contributed more than Rs 50 cr through Payroll Giving since its inception

In its first impact roundtable here on Wednesday, GiveIndia, the not-for-profit philanthropy marketplace, showed 125,000 donors had contributed directly to non-governmental organisations (NGOs) through debit from their salaries in the last 10 years via GiveIndia’s fund-raising initiative of Payroll Giving.

Dhaval Udani, Chief Executive Officer of GiveIndia, said Payroll Giving had completed 10 years, and 125-plus companies and 50,000 active employees had contributed more than Rs 50 crore through Payroll Giving since its inception.

Payroll Giving touches new heights, shows GiveIndia dataPayroll Giving also had newer corporates such as ITC Limited, Cyient Enterprises, Atos India and Emcure Pharmaceuticals, who decided to implement the programme for their employees.

Genpact, TCS, ICICI Bank, HDFC Bank and Vodafone Group are the top five companies on the GiveIndia programme. Udani said on an average, they saw employees across these companies giving Rs 200 a month.

Payroll Giving is a popular concept in countries such as the United Kingdom which enables employees to give to any charity (within the country) straight from their gross salary (before tax is deducted), and in return, they get an immediate tax relief. This amount is deducted periodically and helps employees contribute regularly without feeling the pinch.

With the new Companies Act making it mandatory for them to earmark two per cent of their net profit (the average of the past three years) on corporate social responsibility, industry, experts feel overall charity activities by companies would be much higher in FY15.

Various estimates pointed that the overall spend by companies on CSR could go up to nearly Rs 9,000-9,500 crore for this financial year.

While individuals are eager to give back to society, givers are equally interested to know how their proceeds are being utilised. For instance, GiveIndia processed 93,071 feedbacks in FY14 for contributors. “Whenever an individual makes a donation, he/she would want to know where the money is being utilised. Hence, we send them detailed reports on how the fund has been used and what has been the impact of their contribution,” said Udani.

For GiveIndia, online & retail giving grew by 30 per cent last year, backed by the ‘Wish Tree Campaign’ from ICICI Bank, raising Rs 1.6 crore. This had enabled more than 30,000 customers of ICICI Bank to contribute via 11,000 ATMs during the ‘Joy of Giving Week’.

In FY14, GiveIndia saw a 70 per cent growth, raising Rs 55 crore from over 100,000 individual donors.

This has largely been helped by helping in the effort to raise money to construct Mumbai’s first multi-specialty children’s hospital, which is a project of Rs 85 crore to be completed over 3 years. Without this, the growth in their key divisions has been 20 per cent over the last year. Udani explained that they have now channeled more than Rs 250 crore to causes across India over the last 14 years.

The appetite to donate more among High Net-Worth Individuals (HNIs) has seen a jump, according to GiveIndia. Data from the organisation showed that their fastest growing division has been HNI Giving, which drove the hospital project and raised Rs 29 crore, a growth of 200 per cent over the previous year. GiveIndia, which has HNIs contributing at least Rs 5 lakh per annum and 40 hours of their time to any cause(s) of their choice, has 50 plus members in First Givers Club in Mumbai and 40 plus members in its newly-incorporated First Givers Club in Delhi. This club contributes over Rs 8 crores per annum.