Email Templates to Boost Payroll Giving Participation

4 Email Templates to Boost Payroll Giving Participation

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Payroll giving is one of the simplest and most effective ways for nonprofits to secure steady, recurring donations. Yet many organizations struggle to fully leverage this fundraising channel, largely because they lack clarity and compelling communication with their supporters. That’s where well-crafted outreach⁠, such as these email templates to boost payroll giving⁠, comes in.

In this post, we’ll share four proven email templates designed to drive payroll giving participation, from introducing the concept to thanking committed donors and more:

Whether you’re new to payroll giving or you’re looking to refresh your existing communications, these emails will help you engage supporters and grow a vital revenue stream.

In other words, with the right messaging at the right time, you can educate your audience, motivate participation, and build long-term loyalty through payroll giving.

Let’s begin!

Email #1: Introduction to Payroll Giving

About the email:

Looking to introduce your supporters to the world of payroll giving? This template is designed to provide you with a framework with which to make your audience aware of the opportunity⁠—including what it is, how it benefits, and how to get started.

Email template:

[Subject line] Introducing Payroll Giving: Easy, Automatic, Meaningful

[Name],

Did you know there’s an easy and impactful way to support [Nonprofit]—right from your workplace? It’s called payroll giving, and it allows you to make automatic, tax-deductible donations directly from your paycheck.

Why Payroll Giving?

  • 🧾 Convenient: Donations are deducted automatically—no need to set reminders.
  • 💸 Tax-Efficient: Your gift is often deducted pre-tax, reducing your taxable income.
  • 🎯 Consistent Support: Regular contributions help us plan ahead and sustain our work.

Whether you give $5 or $50 per pay period, payroll giving adds up to lasting change. 

Here’s How You Can Get Started:

  1. Contact your HR or payroll department to inquire about the availability of payroll giving.
  2. Let them know you’d like to support [Nonprofit].
  3. Set your recurring donation amount—it’s that easy!

If you need any help or documentation from our team, just reply to this email. We’re happy to assist!

As always, thank you for being part of our community and for considering this simple yet powerful way to give.

With ongoing gratitude,

[Your Name, Title]
[Nonprofit]
[Contact Info]

Email #2: Does Your Employer Offer Payroll Giving?

About the email:

If you want to help your supporters discover whether they have access to payroll giving, this email is designed to spark that curiosity. The pre-written template shares real eye-opening stats about the prevalence of payroll giving programs. Plus, it encourages readers to connect with their HR teams to see if it’s an option⁠—all while positioning it as an easy, impactful way to give.

Email template:

[Subject line] Does Your Employer Offer This Giving Option?

An Easy Way to Give—Offered by Thousands of Employers

Hi [Name],

Here’s a powerful fact: over 30 million employees have access to payroll giving through their employing companies—and many don’t even realize it!

Payroll giving lets you make automatic donations directly from your paycheck to organizations like [Nonprofit]. It’s one of the simplest and most effective ways to support the causes you care about.

Interested? Take 2 minutes to ask your HR or payroll team if your company offers a workplace giving or payroll deduction program. If they do, simply designate [Nonprofit] as your charity of choice.

Thank you for supporting [Nonprofit] in ways that make the most sense for you. Payroll giving might be one of the easiest and most impactful ways to help us carry our mission forward.

Best regards,

[Name]
[Nonprofit]
[Contact Info]

Make the most of these email templates to boost payroll giving with Double the Donation.

Email #3: Thank You for Your Payroll Giving Support

About the email:

Don’t forget to show your gratitude, either! This email template is designed to recognize and thank supporters who give through payroll deductions. It reinforces the value of their ongoing contributions, highlights the impact of consistent giving, and offers support if they have any additional inquiries.

Email template:

[Subject line] You’re Powering Change, One Paycheck at a Time

Thank You for Being a Payroll Giving Champion

Hi [Name],

We just wanted to take a moment to say thank you for choosing to support [Nonprofit] through payroll giving.

Your consistent generosity—automatically gifted from each paycheck—makes a lasting impact on our work. Whether you’re helping us [insert brief mission-related example, like “deliver meals to families,” “protect local wildlife,” or “fund vital research”], your support is fueling real change in our community.

  • 💸 Your donations add up to significant support over the course of your giving
  • 💪 Regular gifts help us plan long-term and respond quickly to urgent needs
  • 🧡 You’re part of a special group of donors making giving a seamless habit

We truly couldn’t do this without you.

If you ever need to update your payroll gift, get documentation for your records, or learn about other ways to increase your impact (like employer matching), just reach out—we’re here to help!

With heartfelt thanks,

[Your Name]
[Nonprofit]
[Contact Info]

Email #4: Matching Gift Reminder for Payroll Giving

About the email:

Make payroll giving go even further! This template is a friendly reminder for payroll giving donors to check if their employer also offers a matching gift program (as many do). It explains how matching works and how to get started, and encourages donors to take a simple step that could significantly increase their impact—all while reinforcing appreciation for their ongoing support.

Email template:

[Subject line] Reminder: Get your payroll donations matched!

2X the Impact: Your Payroll Gift Might Be Eligible for a Match

Hi [Name],

Thank you again for giving through payroll—your consistent support means so much to us at [Nonprofit].

But here’s something you might not know: your employer may match your payroll donations, potentially doubling (or even tripling) the impact of your gift!

Here’s How It Works:

Many companies offer matching gift programs for charitable contributions made through payroll deductions. All you need to do is:

  1. Search our company database [link to matching gift page] to locate matching gift information for your company.
  2. Follow the provided instructions to submit a simple form (often online) with our nonprofit information.
  3. That’s it! Your employer reviews the request and sends an additional donation our way.

It’s an easy, no-cost way to make your generosity go even further.

With double the thanks,

[Name/Title]
[Nonprofit]
[Contact Info]

P.S. Some companies have deadlines for submitting matching gift requests—so don’t wait to check!

Wrapping Up & Additional Payroll Giving Resources

Effective communication is the key to unlocking the full potential of payroll giving for your nonprofit. By using these four targeted email templates, you can guide your supporters through every stage of the donor journey—from awareness to enrollment, reminders, and gratitude.

Ready to get started? Customize these templates to fit your nonprofit’s brand voice and watch your payroll giving program thrive.

Plus, check out these additional recommended resources to continue growing your knowledge of all things payroll giving:

  • How to Register Your Nonprofit for Payroll Giving [6 Steps]. This straightforward guide breaks down the essential steps your nonprofit needs to take to get registered with payroll giving platforms and employer programs. Perfect for organizations just starting out, it ensures you don’t miss any critical details in the registration process.
  • 7 Strategies for Marketing Payroll Giving to Your Supporters. Learn actionable marketing tactics tailored specifically for promoting payroll giving. From email campaigns to social media tips, this resource helps you effectively raise awareness and boost participation among your donor base.
  • Tracking Payroll Giving: A Nonprofit’s Step-by-Step Guide. Discover how to monitor and analyze your payroll giving revenue with this comprehensive guide. Learn which metrics matter most and how to use data-driven insights to optimize your fundraising efforts over time.

Make the most of these email templates to boost payroll giving with Double the Donation.

Benefits of Payroll Giving for Nonprofits & Donors

Benefits of Payroll Giving for Nonprofits & Donors: A Win-Win

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When it comes to charitable giving, convenience and consistency go a long way. That’s where payroll giving comes in—a simple, powerful way for employees to support the causes they care about through automatic deductions from their paychecks. And it’s not just donors who reap the advantages. These programs establish a reliable, low-maintenance stream of funding that can make a meaningful difference⁠—and the benefits of payroll giving for nonprofits are extensive.

In short, it’s a win-win. Donors can make a bigger impact with less hassle (especially when employer matching is combined with the payroll donation), and nonprofits gain access to a sustainable, often underutilized fundraising channel.

Looking to learn more? We’ll cover the following in this guide:

Whether you’re a nonprofit professional looking to diversify your revenue or a donor interested in giving back more efficiently, payroll giving is certainly worth your attention.

Let’s get started!

What is payroll giving?

Payroll giving is a simple and impactful way for employees to support their favorite nonprofits directly through their regular paychecks. This type of program—part of the broader category of workplace or employee giving—allows individuals to set up recurring donations that are automatically deducted from their wages, often with just a few clicks.

The process is typically facilitated by a company’s HR department or through a third-party workplace giving platform. Once an employee selects a nonprofit and specifies a donation amount, the funds are deducted from their pay each pay period and sent directly to the chosen organization.

The benefits of payroll giving for nonprofits, donors, and companies

Benefits of payroll giving for nonprofits

For nonprofits, payroll giving presents a unique opportunity to tap into a reliable, scalable source of funding, often without adding to the development team’s workload. When organizations take steps to incorporate payroll giving into their fundraising strategies, the results can be both meaningful and long-lasting.

Here’s how nonprofits benefit the most:

1. Consistent, Recurring Donations

Payroll giving provides nonprofits with a predictable stream of revenue. Because donations are automatically deducted from employee paychecks on a regular basis, your organization can count on consistent support that makes budgeting and planning easier.

2. Increased Donor Retention

Recurring donors tend to stick around longer than one-time givers—and payroll donors are no exception. Once an employee sets up their gift through payroll, they’re likely to continue giving steadily over time.

3. Access to Corporate Matching Gifts

Many companies pair payroll giving with a matching gift program, thereby multiplying the impact of employee donations. By participating in payroll giving platforms, nonprofits can unlock additional revenue without asking donors to contribute more out of pocket.

4. Low Administrative Overhead

Payroll gifts are typically processed through third-party platforms or employers, resulting in fewer manual tasks for nonprofit staff. This streamlined approach reduces administrative costs and frees up time to focus on other mission-driven work.

5. Visibility in Workplace Giving Portals

Registering with payroll giving platforms gives nonprofits exposure to new donors—employees who might not have otherwise discovered or supported the organization. Being listed as an eligible nonprofit puts you directly in front of donors who are ready to give.

Bottom line: Whether you’re a small team or a large organization, payroll giving is a sustainable way to diversify your fundraising strategy and deepen donor relationships over time.

Make the most of the benefits of payroll giving with Double the Donation.

Benefits of payroll giving for donors

Payroll giving isn’t just easy. It’s one of the most donor-friendly ways for individuals to make a lasting difference. For those who want to support the causes they care about in a consistent, stress-free way, payroll giving offers several distinct advantages:

1. Convenience and Simplicity

Payroll giving automates the donation process. Once a donor sets it up (which is usually fairly simple in itself), contributions are deducted directly from each paycheck. There’s no need to remember to give monthly, track receipts, or manually submit payments. It’s a “set it and forget it” way to give, which many donors appreciate.

2. Budget-Friendly Giving

Because donations are spread across pay periods, donors can make a significant annual impact without incurring a substantial financial burden all at once. As a result, small amounts deducted biweekly can add up to a meaningful gift by the end of the year.

3. Potential for Matching Gifts

Many employers match payroll donations to eligible nonprofits—often dollar for dollar, and sometimes more. This means a donor’s gift can go twice as far (or further) for a cause they care about without any extra cost on their part.

4. Tax Efficiency

Payroll donations are often deducted pre-tax, which can reduce a donor’s taxable income depending on the employer’s setup. Even when deducted post-tax, donors still receive documentation that makes it easy to claim deductions come tax season.

5. Consistent Support for Charitable Causes

Payroll giving enables donors to provide steady, ongoing support to nonprofits they believe in. This consistency can be more impactful than occasional one-time gifts, helping organizations plan and sustain their work over time.

Bottom line: Whether they’re new to giving or seasoned philanthropists, donors will appreciate the ease, flexibility, and impact that payroll giving brings to their charitable journey.

Tips for nonprofits: making the most of payroll giving

Payroll giving has the potential to become a steady, high-impact fundraising stream for your organization. However, like any revenue channel, it requires visibility, clarity, and the proper infrastructure to make a meaningful impact.

Fortunately for you, nonprofits of all shapes and sizes can successfully grow payroll giving by following a few practical strategies.

Register your cause with leading workplace giving platforms.

To tap into payroll giving donations, your nonprofit must be listed on the platforms employees use to give through their workplace. These platforms—such as Benevity, YourCause, Bright Funds, America’s Charities, and CyberGrants—serve as the gateway between your organization and corporate donors.

Start by researching which platforms are most popular among companies in your region or sector, then complete their registration process carefully. Ensure your nonprofit profile is thorough, up-to-date, and includes compelling descriptions and relevant imagery.

Being present and visible on these platforms significantly increases your chances of being discovered by employees who are ready to give, making this a foundational step in your payroll giving efforts.

Create a dedicated payroll giving page on your website.

Your nonprofit’s website is often the first place potential donors seek information. Creating a dedicated payroll giving page offers a clear, centralized resource that explains how payroll giving works and how supporters can participate.

Marketing payroll giving via your website

Include step-by-step instructions for setting up payroll donations, FAQs, and a company search tool if possible. You’ll also want to highlight benefits such as ease, recurring impact, and the potential for employer matching.

From there, this page can serve as a handy reference, offering linking opportunities in email appeals, social media, and other outreach efforts. This helps donors navigate the process confidently and increases gift conversion rates.

Promote the payroll giving opportunity regularly in donor outreach.

Consistent communication is crucial for raising awareness and increasing participation in payroll giving. To do so, we recommend incorporating payroll giving messaging into your regular email newsletters, social media posts, event communications, and even year-end appeals.

For the best results, use clear, donor-focused language that emphasizes the convenience and impact of the programs. Sharing stories of donors who give through payroll or highlighting recent payroll giving milestones can also add authenticity and motivation. Don’t overlook offline channels, either! Include payroll giving information in mailed newsletters, fundraising events, volunteer efforts, and more.

Marketing payroll giving via email

Why? The more donors are aware of this option, the more likely they are to participate.

Collect employment information to identify eligible supporters.

Knowing where your donors work unlocks powerful fundraising opportunities, including payroll giving and matching gifts. In order to obtain employment information, we suggest implementing an optional “employer” field on all donation forms, event registrations, and volunteer sign-ups. Explain why you’re asking for this information and how it benefits the donor, such as by potentially doubling their gift through employer matches or enabling payroll deductions.

From there, you can use this data to segment your donor database and target outreach to employees of companies with workplace giving programs. This tailored approach ensures you’re focusing time and resources where the potential for payroll giving revenue is highest.

Track and optimize your payroll giving revenue.

Regularly monitoring payroll giving performance helps you understand what’s working and where to improve. Use reporting features provided by workplace giving platforms to track donation amounts, donor counts, and participation trends. From there, you can analyze which companies generate the most revenue and identify gaps in engagement.

Making the most of the benefits of payroll giving for nonprofits

By treating payroll giving like any other fundraising channel, you can optimize your approach over time, boosting your nonprofit’s steady stream of support.

Bonus: Benefits of payroll giving for companies

While payroll giving is a win for nonprofits and donors alike, it’s also a smart move for the companies that offer it. Here’s why:

1. Strengthens Company Culture

Offering payroll giving empowers employees to support causes they care about, fostering a culture of generosity and purpose. When team members feel their employer supports their values, morale and job satisfaction naturally improve.

2. Enhances Employee Retention and Recruitment

Today’s workforce, especially younger generations, wants to work for companies that give back. A robust giving program (including payroll giving options) can help businesses attract mission-driven talent and retain employees over the long term.

3. Boosts Brand Image and CSR Impact

Payroll giving programs are a tangible way for companies to demonstrate their commitment to corporate social responsibility (or CSR). Publicly supporting nonprofit causes—particularly those aligned with the company’s values—can enhance the brand’s perception among customers, investors, and the broader community.

4. Encourages Higher Participation Through Matching

When companies match employee donations, they signal that charitable giving is a shared priority among their teams. This not only amplifies the program’s total impact but also increases employee participation and engagement in giving.

5. Provides Data to Inform CSR Strategy

Many workplace giving platforms offer reporting tools that help employers track employee participation, top-supported causes, and total contributions. These insights can guide future CSR initiatives and strengthen community partnerships.

Bottom line: Payroll giving isn’t just good for nonprofits and donors—it’s a strategic advantage for businesses looking to lead with purpose, engage their workforce, and build lasting social impact.

Wrapping up & additional resources

Payroll giving offers the rare advantage of being easy, effective, and mutually beneficial. Donors get a seamless way to support causes they care about, often with the added bonus of employer matching. Meanwhile, nonprofits receive steady, dependable contributions without incurring additional administrative costs.

As more companies embrace workplace giving, it’s the perfect time for nonprofits to tap into this opportunity and for donors to maximize their charitable impact. When donors and nonprofits both benefit, everyone wins.

Looking for more information on all things payroll giving-related? Check out these additional recommended resources:

Make the most of the benefits of payroll giving with Double the Donation.

7 Strategies for Marketing Payroll Giving to Your Supporters

7 Strategies for Marketing Payroll Giving to Your Supporters

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According to recent payroll giving statistics, 59% of survey respondents have no familiarity with payroll giving initiatives. Fortunately, however, marketing payroll giving opportunities to your nonprofit supporters can significantly boost participation in the programs⁠—and enhance your overall fundraising efforts.

After all, payroll giving programs allow donors to contribute a portion of their salary to your organization automatically, providing a steady stream of income with minimal effort. However, many potential donors remain unaware of this giving method or how easy it is to participate.

In this post, we’ll explore seven practical strategies to help you market payroll giving and make it a core component of your fundraising plan.

  1. Create a Payroll Giving page on your nonprofit website.
  2. Incorporate payroll giving in your email marketing.
  3. Promote payroll giving initiatives on social media.
  4. Collect and leverage employment information in your outreach.
  5. Consider donors already eligible for other workplace giving programs.
  6. Collaborate with corporate partners to highlight the opportunity.
  7. Offer exclusive incentives for payroll giving donors.

By implementing the right marketing strategies, you can educate your supporters, promote the convenience of payroll giving, and inspire long-term donor engagement.

Let’s begin!

1. Create a Payroll Giving page on your nonprofit website.

Starting off, you’re going to want to market payroll giving programs prominently throughout your nonprofit or school’s website. A dedicated payroll giving page on your nonprofit’s website is a powerful tool for educating potential donors about this giving option, serving as a centralized hub where supporters can easily learn about the benefits, process, and impact of payroll giving.

Marketing payroll giving via your website

Start by explaining what payroll giving is, highlighting how it allows employees to contribute to your cause directly from their paycheck on a recurring basis. Ensure the page features clear instructions on how to enroll in payroll giving, too, such as through their employer’s CSR platform or by contacting their HR department.

You’ll also want to emphasize the convenience of payroll giving. Once donors sign up, they don’t have to worry about making regular donations manually. It’s a simple, consistent, and tax-efficient way to support the cause they care about.

2. Incorporate payroll giving in your email marketing.

Email marketing is one of the most effective ways to reach your nonprofit’s supporters, and incorporating payroll giving into your email campaigns can significantly boost participation.

Start by crafting a compelling email that educates your audience on the advantages of payroll giving, emphasizing its ease, convenience, and long-term impact. Highlight the benefit of steady, recurring donations for your organization, personalizing the message to show supporters how their payroll donations can drive meaningful change in the community or cause they care about.

Marketing payroll giving via email

Include clear calls-to-action in the email, encouraging recipients to enroll in payroll giving through their employer. You can link directly to your nonprofit’s payroll giving webpage or provide detailed steps for contacting their HR department to inquire about the program. It’s also helpful to include examples of companies that offer payroll giving or suggestions for how donors can advocate for the program if their employer doesn’t currently provide it.

For the best results, we recommend regularly mentioning payroll giving in different types of email communications⁠—such as newsletters, thank-you emails, or special campaign updates. This keeps the option top of mind for donors while reinforcing the importance of their continued support.

3. Promote payroll giving initiatives on social media.

Social media is a powerful channel for engaging with your nonprofit’s audience, and it can be a highly effective tool for promoting payroll giving programs, too.

Marketing payroll giving via social media

Use platforms like Facebook, Twitter, LinkedIn, and Instagram to share posts that explain what payroll giving is and how supporters can participate. Share success stories, testimonials, or case studies from current payroll donors to demonstrate the program’s real-world impact. Not to mention, visual content like infographics or short videos can be particularly effective in grabbing attention and communicating key messages.

Regularly include payroll giving in your content rotation, using relevant hashtags to increase visibility when appropriate. Remember: the goal is to ensure supporters are consistently reminded about this giving option and can easily find the information they need to get started.

4. Collect and leverage employment information in your outreach.

The more you know about your donors, the better you can engage them in workplace giving programs like payroll deductions and more. Specifically, having access to accurate and up-to-date employment data can go a long way.

But how can you collect this information? Start by incorporating questions about employment during the registration or donation process. Ask supporters to share the name of their employer, as well as whether they are aware of any workplace giving programs like payroll giving, matching gifts, or volunteer grants.

Marketing payroll giving with employment information

Once you’ve collected employment data, segment your donor list by company and customize your communications based on the giving opportunities available at those businesses. For example, if you know that a particular company offers payroll giving, you can send targeted emails to employees at that company, providing detailed instructions on how they can enroll in the program. If their company doesn’t currently offer payroll giving, encourage those donors to advocate for it within their workplace.

Top tip: If you lack quality employment information about your donors, consider utilizing a data enhancement service. This will allow you to fill in some gaps and provide the information you need to identify the best workplace giving programs in your network!

5. Consider donors already eligible for other workplace giving programs.

When it comes to workplace giving, most participating companies offer more than one way for employees to get involved. For example, statistics indicate that nearly two-thirds of companies report matching employee payroll contributions, and many of the top matching gift companies offer volunteer grants, too.

But what does that mean for your team?

Supporters who already participate in other workplace giving programs, such as matching gifts or volunteer grants, may be ideal candidates for payroll giving initiatives. To target this segment, begin by identifying donors who have previously submitted matching gift requests or applied for volunteer grants. These individuals already have a relationship with their company’s corporate social responsibility initiatives, which makes them a strong target audience for payroll giving.

Marketing payroll giving with text message

In your outreach, emphasize the complementary nature of payroll giving to other workplace programs. You’ll want to acknowledge their previous participation in workplace giving programs and thank them for their ongoing support. Then, introduce payroll giving as a way to streamline their contributions and make an even greater difference. You can even highlight how their regular contributions through payroll giving can be further amplified through matching gift programs, doubling, or even tripling their impact.

6. Collaborate with corporate partners to highlight the opportunity.

Nowadays, more and more organizations are beginning to take an increasingly proactive approach to marketing payroll giving programs to their supporters. Still, many companies choose to promote the opportunity to their employees, too. And for that reason, collaborating with the businesses offering the programs can go a long way in heightening visibility and participation.

Marketing payroll giving via company partnerships

Start by reaching out to companies that already support your nonprofit through donations, sponsorships, or volunteer programs. Ask if they have a payroll giving program in place and discuss ways to promote the initiative to their employees. This could even involve co-branded marketing materials, such as email templates, flyers, or social media posts that both the company and your nonprofit can share with their audiences.

7. Offer exclusive incentives for payroll giving donors.

To encourage supporters to participate in payroll giving, consider offering exclusive incentives that reward their commitment to ongoing contributions. This can make the process more appealing and demonstrate your nonprofit’s appreciation for their support.

While it will likely vary based on the wants and needs of your particular audience, potential incentives may include…

  • Public recognition, such as listing names on a dedicated “payroll giving wall” on your website or donor newsletters. (Top tip: Public recognition can foster a sense of pride and community among payroll donors, motivating others to join, too!)
  • Access to exclusive events, such as virtual meet-and-greets with your organization’s leadership or tours of your facilities.
  • Branded merchandise, like T-shirts, tote bags, or water bottles, as a thank-you for committing to payroll giving.

Marketing payroll giving with unique incentives

Consider tying incentives to donation milestones, such as offering a special gift to donors who have contributed for a certain number of months or reached a specific donation amount. This not only encourages initial sign-ups but also helps retain donors over the long term.

Wrapping Up & Additional Resources

Effectively marketing payroll giving can transform the opportunity into a powerful, recurring revenue stream for your organization. By leveraging digital and other marketing tactics to educate supporters and partner with companies in your network, you can unlock the full potential of workplace giving and build stronger, more consistent donor relationships.

As you implement the seven strategies above, you’ll not only raise awareness of payroll giving but also encourage long-term contributions that help sustain your nonprofit’s mission. Don’t let the opportunity go to waste!

For more information about effectively marketing payroll and other employee giving opportunities, check out the following resources:

  • The Ultimate Guide to Marketing Matching Gifts. Discover the most effective strategies for promoting corporate matching gift programs to your nonprofit’s supporters. This comprehensive guide walks you through the key tactics to increase donor engagement, raise awareness of matching opportunities, and maximize the impact of employer-matched donations.
  • Marketing Corporate Volunteerism | A How-To Resource For Orgs. Corporate volunteerism is a powerful resource for nonprofits, but how do you encourage businesses and their employees to get involved with your organization? This guide provides actionable steps for creating compelling volunteer opportunities that align with employee interests and CSR goals.
  • Tracking Payroll Giving: A Nonprofit’s Step-by-Step Guide. Payroll giving can be a valuable and consistent source of funding, but tracking those donations is essential for success. This guide outlines the process nonprofits should follow to track payroll giving contributions efficiently, from registering with payroll platforms to monitoring and reporting on giving patterns.

Payroll Giving_Large CTA

Tracking Payroll Giving- A Nonprofit’s Step-by-Step Guide

Tracking Payroll Giving: A Nonprofit’s Step-by-Step Guide

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Payroll giving is a powerful tool for fundraising organizations, providing a steady and reliable stream of income through regular donations directly from supporters’ paychecks. As more companies implement payroll giving programs to support charitable causes, nonprofits like yours must understand how effectively managing and tracking payroll giving can make an impact.

Why? Properly monitoring payroll donations ensures accurate financial reporting, strengthens donor relationships, and maximizes the overall impact of this funding source.

In this blog post, we’ll walk you through a step-by-step guide on how to track payroll giving for your cause. This includes:

  1. Registering for companies’ payroll giving platforms.
  2. Determining specific payroll giving metrics and objectives.
  3. Establishing a system for recording payroll donations
  4. .Monitoring regular contributions.
  5. Reconciling payroll donations with financial records.
  6. Reporting on KPIs and other giving patterns.

From setting up the necessary infrastructure to reconciling your financial records and beyond, we’ll cover everything you need to know to stay on top of your payroll giving program and enhance its long-term success. Let’s dive in!

1. Register for companies’ payroll giving platforms.

The first step in effectively tracking payroll giving is for your nonprofit to register with the companies or platforms that offer payroll giving programs. Many corporations partner with specific third-party platforms, such as CSR software, to manage their payroll giving initiatives. By registering on these platforms, your organization becomes eligible to receive donations directly from employees’ paychecks, making it easier to capture funds and track giving trends.

Tracking payroll giving with CyberGrants

The registration process itself typically involves providing key organizational information, including your nonprofit’s EIN (Employer Identification Number), mission statement, and financial documentation. You may also be asked to complete a verification process to confirm your nonprofit’s status as a registered 501(c)(3) organization.

Then, once approved, your organization can be listed on the company’s payroll giving platform, enabling employees to select your nonprofit as a beneficiary of their payroll contributions. Just keep in mind that the better you maintain your profile, the more accessible your organization will be to potential donors within participating companies.

Top tip: While there’s a ton of CSR software out there, we recommend prioritizing CLMA-designated solutions first. These platforms demonstrate an ongoing commitment to streamlining the employee giving process, and even offer a seamless matching gift experience for donors who qualify for donation-matching!

2. Determine specific payroll giving metrics and objectives.

Before tracking payroll giving, your nonprofit must first establish clear metrics and objectives that you wish to capture. By determining what success looks like, you can collect and analyze the right data to optimize your approach. These metrics will help guide your analysis, identify trends, and allow you to make necessary improvements to maximize your payroll giving revenue.

To start, we recommend identifying key performance indicators (KPIs) that align with your organization’s goals. Some important payroll giving metrics you might consider include:

  • Number of payroll donors: How many employees are participating in payroll giving?
  • Average donation size: How much are donors contributing through payroll deductions?
  • Total amount raised: What is the overall financial impact of your payroll giving program?
  • Donor retention rates: How many payroll donors continue their contributions over time?
  • Donor growth rate: Are you attracting new donors through payroll giving programs?
  • Employer match rates: How often are donations being matched by the participating companies?

In addition to financial metrics, consider tracking engagement and awareness-building efforts. For instance, you may want to monitor how many companies your organization has registered with, how frequently your nonprofit is being promoted on payroll platforms, and the extent to which employees are aware of your participation.

Defining these objectives will not only help you track progress but also assist in creating a strategy to optimize payroll giving. Clear metrics allow you to compare your results over time, analyze what’s working, and adjust your approach accordingly. Ultimately, having well-established goals will help your nonprofit make data-driven decisions and achieve sustained growth in your payroll giving efforts.

Get a demo of our matching gift software to multiply the impact of payroll giving.

3. Establish a system for recording payroll donations.

Once your organization is listed on payroll giving platforms and you’ve determined the KPIs you wish to track, the next step is to establish a reliable system for recording payroll donations. Remember: effective tracking requires organized and accurate documentation of each gift, making it crucial to develop a robust method for capturing payroll donation data.

Start by integrating your nonprofit’s CRM (or Constituent Relationship Management) system with payroll platforms or donation management tools. Many CRM systems even offer specialized features for recording recurring donations like payroll contributions. Ensure that your CRM is set up to automatically track the donation details, including the donor’s name, donation amount, frequency, and employer.

Additionally, your system should be capable of categorizing payroll donations separately from other types of contributions, such as individual one-time gifts or grants. This allows your team to monitor and report on payroll giving specifically, ensuring better accuracy in your overall financial reporting.

Create standardized procedures for entering payroll donation data, especially if the process requires manual entry. This should include guidelines for inputting donor information, donation amounts, and transaction dates, as well as how to handle any errors or discrepancies in reporting.

Maintaining organized and updated records will help you avoid common pitfalls like double-counting donations, losing track of donors, or failing to reconcile your financial reports properly. A well-structured system ensures that your organization can track, analyze, and optimize payroll giving effectively, resulting in better decision-making and streamlined reporting.

4. Monitor regular contributions.

Once you have an efficient system in place to record payroll donations, the next step is to monitor these contributions regularly. Since payroll donations are often recurring, tracking and reviewing them on an ongoing basis is essential for managing your nonprofit’s cash flow and donation trends.

It’s important to set a schedule for checking donation activity, whether that’s weekly, biweekly, or monthly. Regular monitoring allows your nonprofit to quickly identify fluctuations in giving patterns, such as increases during key fundraising periods or decreases during off-seasons. It also helps ensure that donations are consistently received from payroll platforms and that there are no delays in disbursement.

During these reviews, verify that the correct donation amounts are being recorded and ensure that no payments have been missed. Monitoring should also include keeping an eye on matching gift contributions if companies offer them alongside payroll giving. These matching donations can significantly boost the overall funds received, making it crucial to track and follow up on any outstanding matches.

In addition, consider setting up automated alerts or reports to notify your team of key changes in payroll donations, such as when a new donor begins contributing or an existing donor alters their contribution amount. Having this information readily available will allow you to respond proactively, whether by thanking new donors, reaching out to those who adjusted their contributions, or following up on any discrepancies in donation amounts.

5. Reconcile payroll donations with financial records.

To maintain transparency and accuracy in your nonprofit’s finances, it’s crucial to regularly reconcile payroll donations with your broader financial records. Reconciliation involves comparing your internal records of payroll donations with the financial data provided by payroll platforms or corporate partners to ensure everything matches and there are no discrepancies to consider.

This process typically starts by reviewing your financial reports, which should list all donations received during a specific period. From there, compare these records with the reports generated by payroll giving platforms or the companies facilitating the donations. Look for any discrepancies between the two sets of data, such as missed donations, incorrect amounts, or unmatched transactions.

Be sure to track donation timing as well. Payroll donations are often disbursed on a different schedule from one-time gifts, meaning you may need to account for delays in receiving funds or differences between when donations are pledged and when they appear in your account.

Once you’ve identified any inconsistencies, work with your finance team and the payroll platform to address and correct any issues. This might involve contacting the donor’s employer or the payroll platform to verify missing contributions or to reconcile donation amounts.

All in all, accurate reconciliation is key to ensuring that your nonprofit’s financial health remains intact. Not to mention, donors can trust that their contributions are being properly recorded and used as intended.

6. Report on KPIs and other giving patterns.

The final step in tracking payroll giving is to report on the key performance indicators (KPIs) and analyze the giving patterns. Once you’ve gathered sufficient data, use it to create reports that offer insights into how well your payroll giving program is performing. This not only helps your internal team assess progress but also demonstrates accountability to your board, stakeholders, and donors.

When preparing your reports, consider including metrics such as:

  • Total payroll donations received over a specific period
  • Number of active payroll donors
  • Average contribution size
  • Growth in payroll giving participation
  • Comparison of payroll donations versus other giving channels
  • Employer match contributions and their impact

These reports can highlight trends in donor behavior and reveal patterns in employee giving, such as increased donations during specific months or after targeted marketing campaigns. Additionally, breaking down contributions by employer can help identify which companies are driving the most payroll giving and where more efforts might be needed to engage new partners.

Beyond financial reports, it’s valuable to analyze donor retention and engagement rates. Are employees continuing their payroll contributions year over year, or do they tend to drop off after a few months? Understanding this will help you tailor your outreach and stewardship efforts.

Regular reporting allows your nonprofit to fine-tune its approach to payroll giving, identify opportunities for growth, and ensure your program’s long-term success.

Final thoughts & additional resources

Tracking payroll giving donations is essential for ensuring your nonprofit fully benefits from this invaluable funding source. Follow the steps outlined in this guide to equip your team to manage payroll donations efficiently, maintain accurate records, and nurture strong relationships with your supporters.

As payroll giving continues to grow in popularity, nonprofits that implement effective tracking strategies better position themselves to capitalize on this consistent source of revenue and ultimately drive greater impact for their missions. Good luck!

For more information on payroll and other workplace giving strategies, check out the following recommended resources:

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