Payroll Giving Letters-Templates to Grow Recurring Funds

Payroll Giving Letters: Templates to Grow Recurring Funds

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In the nonprofit world, monthly recurring donors are gold. They provide the predictable, sustainable cash flow that allows organizations to plan for the future with confidence rather than constantly scrambling to fill budget gaps. While many nonprofits focus heavily on credit card subscriptions to build this sustainers program, there is a more stable, tax-efficient, and often overlooked avenue: payroll giving. This mechanism allows supporters to donate directly from their paychecks, often pre-tax, turning sporadic donors into lifelong partners. The key to unlocking this revenue stream? Strategic payroll giving letters.

Many of your supporters would likely embrace the convenience and tax benefits of payroll giving if they only knew it was an option. However, these programs are often buried in corporate HR portals or employee handbooks, unbeknownst to the donor. By incorporating specific payroll giving letters into your communication strategy, you can educate your donors, guide them through the enrollment process, and secure a baseline of funding that grows automatically with every pay period.

In this guide, we’ll cover:

Whether you are looking to convert a loyal annual donor into a monthly payroll giver or trying to acquire new support from a corporate partner’s workforce, this guide provides the tools and templates you need to succeed.

The Strategic Value of Payroll Giving Communications

Before sending out appeals, it is crucial to understand why payroll giving is worth the specific communication effort. Payroll giving (also known as workplace giving) is a method that allows employees to donate to charities directly from their salaries.

For nonprofits, the benefits are transformative. Payroll giving provides a steady, predictable income stream that improves financial planning and program continuity. Furthermore, payroll donors typically have higher retention rates than credit card donors because the donation is integrated into their employment; it doesn’t expire when a credit card date passes, and it doesn’t require monthly action from the donor.

For donors, the benefits are equally compelling. Donations are often deducted pre-tax, meaning the donor receives an immediate tax benefit, and the “cost” of the donation feels lower while the nonprofit receives the full value. It is effortless, budget-friendly, and convenient.

Despite these “win-win” dynamics, participation often lags due to a lack of awareness. Employees simply do not know their company offers the program or how to access it. Your payroll giving letters serve as the bridge, informing supporters of this benefit and providing the specific instructions they need to enroll.

Did You Know? Payroll giving is a gateway to even greater support. Many companies that offer payroll deductions also offer matching gift programs. When an employee sets up a recurring payroll donation, they are often perfectly positioned to activate a matching gift, potentially doubling the impact of every paycheck contribution automatically.

The Anatomy of a Perfect Payroll Giving Appeal

Asking a donor to change how they give requires a clear value proposition. You are asking them to log into a corporate portal and make a financial decision. To ensure your payroll giving letters are effective, they must be structured to highlight convenience and impact.

Every effective letter or email should contain the following elements:

  1. The “Why” (Impact): Start by reminding the donor of the work their money supports. Connect the reliability of payroll giving to the reliability of your services. For example, “Just as our community relies on us every day, we rely on steady funding to keep our doors open.”
  2. The “How” (Convenience & Tax Benefits): Explain the mechanism simply. Highlight that it comes out of their paycheck automatically and mention the pre-tax benefit. This is a major selling point—they can give more for less cost to their take-home pay.
  3. The “Cheat Sheet”: To enroll in a payroll giving scheme, employees usually need specific details about your nonprofit to find you in their CSR platform (like Benevity, YourCause, or CyberGrants). Include a sidebar or section with:
    • Your organization’s legal name
    • Your EIN/Tax ID number
    • A keyword to search in their portal
  4. A Direct Call to Action (CTA): Don’t just ask them to “consider” it. Ask them to “Login to your employee portal today” or “Ask your HR representative for the enrollment form.”

Scenario 1: The Existing Donor (Conversion)

Your best prospects for payroll giving are people who already support you. They trust your mission, but may be giving sporadically via credit card. Use this template to convert them into consistent, automated sustainers.

Subject: A smarter way to support [Nonprofit Name]

Dear [Donor Name],

Thank you for your continued generosity. Because of supporters like you, we have been able to [mention a recent impact/accomplishment].

We know you care deeply about our mission, and we wanted to share a way to make your support even more impactful—while potentially lowering your own taxes.

Have you considered Payroll Giving? By setting up a recurring donation directly from your paycheck, you provide the steady, reliable funding we need to plan for the future. Plus, because these donations are often deducted pre-tax, you may be able to give more while lowering your taxable income.

It is the ultimate “set it and forget it” way to make a difference.

How to switch: Check your employer’s HR or charity portal (like Benevity or CyberGrants) to see if they offer a workplace giving program. Search for us using the info below:

  • Organization: [Legal Name]
  • Tax ID (EIN): [00-0000000]

If you set up a payroll deduction, please let us know so we can update our records and thank you properly!

Sincerely,

[Signature]

Quick Tip: If you have a donor who gives $100 once a year, frame the payroll ask as “$5 per paycheck.” It feels like a smaller amount to the donor, but results in $120 or more annually for you.

Scenario 2: The Known Eligible Individual

If your data indicates a donor works for a company with a known payroll giving program (e.g., the federal government, Microsoft, or companies using platforms like Benevity), you can send a highly specific appeal.

Subject: Maximize your impact through [Employer Name]

Dear [Donor Name],

Thank you for being a champion for [Nonprofit Name]. We are writing because our records indicate you work for [Employer Name].

Did you know that [Employer Name] offers a robust Payroll Giving program? This allows you to support the causes you care about directly through automatic payroll deductions. It is one of the most efficient ways to give, ensuring 100% of your donation goes to work immediately.

Why give through [Employer Name]?

  • Convenience: No credit cards to update or checks to write.
  • Tax Efficiency: Donations are often deducted pre-tax.
  • Matching: [Employer Name] may match your payroll contributions, doubling your impact automatically!

Next Steps:

  1. Log in to your employee giving portal.
  2. Search for [Nonprofit Name] (EIN: [00-0000000]).
  3. Select a recurring amount that works for your budget.

Thank you for leveraging your workplace benefits to power our mission!

Sincerely,

[Signature]

Scenario 3: The Unknown Eligibility Individual

For most of your database, you may not know their employer. This letter serves as a discovery tool, educating them on the concept and encouraging them to investigate their own benefits. This can also help you uncover employer appends data for future segmentation.

Subject: Does your employer make giving easy?

Dear [Supporter Name],

We are constantly amazed by the dedication of our community. Today, we wanted to highlight a way you might be able to support [Nonprofit Name] that is easy, budget-friendly, and impactful.

Many companies allow employees to donate to their favorite charities directly from their paychecks. It is a simple way to break a large annual gift into small, manageable contributions deducted each pay period.

Does your company participate? We encourage you to check your employee handbook or ask your HR department if a “Payroll Giving” or “Workplace Giving” scheme is available.

If it is, you can usually find us by searching for:

  • Name: [Legal Name]
  • Tax ID: [00-0000000]

If you decide to enroll, please drop us a quick reply so we can say thank you!

With gratitude,

[Signature]

Scenario 4: The Prospective Donor (Acquisition)

When reaching out to new audiences (perhaps through a corporate lunch-and-learn or a volunteer event), focusing on payroll giving can lower the barrier to entry.

Subject: Join us for just a few dollars a paycheck

Dear [Name],

It was great meeting you at [Event/Context]. We hope you felt inspired by the work [Nonprofit Name] is doing to [Mission Statement].

We know that budgets can be tight, but making a difference doesn’t require a large check. Through Payroll Giving, you can support our work for the cost of a cup of coffee per paycheck.

Small gifts add up to big change. By authorizing a small deduction from each paycheck, you join a community of sustainers who keep our programs running year-round. It is effortless, tax-smart, and deeply appreciated.

Ready to join us? Check your company’s giving portal today to see if you can select [Nonprofit Name] as your charity of choice.

Together, we can achieve [Goal].

Sincerely,

[Signature]

Scenario 5: The Advocacy Letter (Ineligible Individuals)

If a supporter wants to give via payroll but their company doesn’t offer a program, empower them to be an advocate. This template is for them to send to their own HR department.

Subject: A suggestion for our employee benefits

Dear [Supporter Name],

Thank you for your interest in supporting [Nonprofit Name] through payroll giving! We are sorry to hear your employer doesn’t currently offer this program, but your voice could change that.

Many companies launch workplace giving programs because employees ask for them. If you are willing, feel free to share this note with your HR team:

Hi [HR Contact],

I am a proud supporter of [Nonprofit Name] and was looking for a way to contribute through payroll deduction. I know many companies offer Workplace Giving programs to support employee philanthropy and boost engagement.

Would [Company Name] consider implementing a payroll giving platform? It would mean a lot to my colleagues and me to have a simple, company-sanctioned way to support our community.

Thanks, [Employee Name]

Thank you for advocating for us!

Sincerely,

[Signature]

Best Practices for Sending Payroll Giving Emails

Writing the letter is just the first step. To maximize the impact of your payroll giving letters, consider these strategic best practices regarding timing and targeting.

1. Leverage Key Timing Windows

There are specific times of year when employees are already thinking about benefits and financial planning.

  • Open Enrollment (Fall): When employees are selecting health insurance and benefits, they are already logged into HR portals. This is the perfect time to remind them about payroll giving.
  • New Year (January): “New Year, New Goals.” Encourage supporters to make a resolution to give back.
  • Tax Season (April): Remind donors that payroll giving can simplify their tax prep by consolidating charitable deductions on their W-2.
  • New Hire Onboarding: If you have corporate partners, ask them to include a flyer about your nonprofit in their new-hire packets.

2. Segmentation is Key

Don’t blast the same message to everyone. Segment your list by:

  • Gift Size: Donors giving small amounts ($10-$25) are great candidates for payroll giving because it breaks the gift down even further, making it feel negligible to their budget while providing you with consistent revenue.
  • Employment: Use employer appends to identify which donors work for companies with known giving platforms like Benevity. Send them the “Known Eligible” template with specific instructions for that platform.

3. Integrate with Matching Gifts

Always mention matching gifts in your payroll giving appeals. Many corporate portals allow employees to request a match at the same time they set up their payroll deduction. This “set it and forget it” synergy is the holy grail of corporate fundraising.

4. Automate the Process

Just like with matching gifts, you can use technology to streamline this. Tools like Double the Donation help donors identify if their company offers workplace giving programs. By integrating a search tool on your website, you can capture this intent and trigger automated emails with the right templates based on the donor’s employer.

Wrapping Up & Next Steps

Payroll giving letters are a low-cost, high-reward tool to modernize your fundraising. They move donors away from sporadic, transactional giving and toward a relationship defined by consistency and ease. By guiding your supporters through the administrative hurdles of their corporate portals, you unlock a stream of unrestricted revenue that arrives like clockwork.

Ready to grow your recurring revenue?

  • Audit your website: Create a dedicated “Workplace Giving” page with your Tax ID and simple instructions.
  • Check your data: Identify which donors work for major employers in your region.
  • Send the emails: Use the templates above to launch a targeted campaign during your next newsletter cycle.

Don’t let the administrative nature of payroll giving scare you away. With the right letters, you can turn complex corporate benefits into simple, sustainable support for your mission. Plus, you can use Double the Donation’s payroll giving services to automate the identification of eligible supporters and access company-specific instructions and next steps!