For many nonprofit organizations, the holy grail of fundraising is sustainable, recurring revenue. While one-time donations from galas and end-of-year appeals provide vital injections of cash, it is the steady drip of monthly giving that allows an organization to plan for the future with confidence. Among the various methods of recurring giving, one stands out for its efficiency, retention rates, and ease of use: payroll giving.

The payroll giving process transforms a standard donor into a lifetime supporter by integrating charitable contributions directly into their paycheck. It is a “set it and forget it” mechanism that benefits the donor, the employer, and most importantly, your nonprofit. Despite its power, many organizations view payroll giving as a passive activity, or something that just “happens” in the background.

By understanding the mechanics of how these donations are initiated, processed, and disbursed, your nonprofit can actively influence the cycle. You can move from passively receiving checks to actively recruiting payroll donors, ultimately unlocking a robust stream of unrestricted funding.

In this guide, we’ll cover:

Let’s pull back the curtain on workplace giving and explore how this process can become a cornerstone of your development strategy.

What Is Payroll Giving?

Payroll giving is a form of corporate philanthropy where employees elect to donate a portion of their salary to eligible nonprofit organizations. Unlike a credit card donation, which requires active management and is subject to expiration dates and cancellations, payroll giving is deducted automatically by the employer’s payroll system.

For the donor, it offers convenience and tax efficiency. Meanwhile, for the employer, it boosts corporate social responsibility (CSR) metrics and employee engagement. And for the nonprofit, it provides high-retention, unrestricted revenue that arrives like clockwork.

Did You Know? Payroll giving donors have some of the highest retention rates in the fundraising world. Because the donation is tied to their employment rather than a payment method like a credit card, “involuntary churn” (losing a donor because their card expired) is virtually eliminated.

Step 1: Determining Eligibility

The payroll giving process begins with the donor. Before a single cent can be deducted, an individual must determine if they are eligible to participate in a workplace giving program. This is often the biggest hurdle for nonprofits: donors simply do not know the program exists.

Eligibility typically depends on two factors: the employer’s policy and the employee’s status. Most major corporations with formal CSR programs—such as Microsoft, Google, and UnitedHealth Group—offer payroll giving to all full-time employees. Many are now expanding these benefits to part-time staff and even retirees (via pension deductions), though this varies by company.

For the nonprofit, this step is about education. You cannot rely on HR departments to market these programs for you. You must proactively remind your supporters to check their benefits. By including a simple “Check if your employer offers workplace giving” search tool on your website, you can help donors clear this first hurdle instantly.

Step 2: Accessing the Payroll Portal

Once a donor knows they are eligible, they must navigate to the mechanism that makes the donation possible: the employer’s payroll or CSR portal. In the past, this might have been a paper form handed to an HR manager. Today, it is almost exclusively a digital experience.

Most large companies utilize third-party intermediaries to manage this process. Platforms like Benevity, YourCause, CyberGrants, and America’s Charities serve as the bridge between the employee, the company payroll system, and the nonprofit.

The employee logs into their internal company intranet or a dedicated app. This portal is their hub for all things philanthropy, often housing matching gift requests, volunteer logging, and payroll deduction setups in one dashboard. For the nonprofit, this means your “visibility” is largely determined by how you appear in these third-party databases. If your profile on these platforms is outdated or lacks a logo, you may be overlooked during this critical access phase.

Quick Tip: Claim your profiles! Ensure your organization is registered and up-to-date on major CSR platforms like Benevity and GuideStar. When a donor accesses their portal to give, you want them to see your logo, your mission statement, and a clear call to action—not a generic placeholder.

Step 3: Registration and Selection

Now that the donor is in the system, they move to the registration phase. This is where the specific commitment is made. The donor searches for your organization within the portal.

This search functionality is why maintaining your keywords and NTEE codes (National Taxonomy of Exempt Entities) is vital. Employees might search for “Animal Rescue” rather than your specific name. Being properly categorized ensures you appear in the results.

Once found, the donor makes two critical decisions:

  • Frequency: They can choose a one-time deduction (often used for disaster relief or end-of-year giving) or a recurring deduction (the gold standard for nonprofits).
  • Amount: They select a dollar amount to be deducted per pay period.

This step is where the “micro-donation” power of payroll giving shines. A donor might hesitate to write a $250 check on the spot. However, selecting a $10 deduction per pay period feels financially manageable. Over the course of a year (26 pay periods), that small choice results in $260 for your mission—often more than the donor would have given in a single sitting.

Step 4: The Automatic Deduction

After the donor clicks “submit,” the payroll giving process moves out of their hands and into the automated infrastructure of the employer. This is the “set it and forget it” phase that makes this funding source so reliable.

The CSR platform communicates the pledge to the company’s payroll department. In the next pay cycle, the specified amount is deducted from the employee’s gross or net pay (depending on the country and specific tax structure). In the United States, these deductions are typically post-tax, meaning the employee pays taxes on their income and then makes the donation, retaining the right to claim it as a tax deduction at the end of the year.

Crucially, this is also the stage where corporate matching often kicks in. Many sophisticated payroll giving programs are set up to automatically match the employee’s deduction in real-time. If an employee pledges $50, the system notes a $50 match from the employer, effectively doubling the impact without any further administrative work from the donor.

Step 5: Securing Funds for Your Organization

The final leg of the journey is the distribution of funds. This is often the most confusing part for nonprofits because the money rarely comes directly from the donor’s employer.

Instead of receiving a check from “Apple” or “Home Depot,” you will likely receive a disbursement from the intermediary (e.g., the American Online Giving Foundation or the UK Online Giving Foundation). These platforms aggregate donations from thousands of employees across dozens of companies and send them to you in a single batch payment.

Timing: Unlike a credit card donation which hits your account in days, payroll donations are often disbursed monthly or quarterly. Reporting: Along with the funds, you should receive a report (accessed via the intermediary’s nonprofit portal) detailing the donors. However, data privacy rules sometimes mean donor information is redacted unless the employee explicitly opts in to share it.

Securing these funds requires your finance team to recognize these batched payments and reconcile them correctly. It also requires a strategy for stewarding donors who might remain anonymous.

Optimizing the Process for Growth

Now that you understand the payroll giving process, how can you influence it? You can’t log into the portal for the donor, but you can guide them to it.

Market the Option: Don’t keep payroll giving a secret. Add a section to your “Ways to Give” page specifically for Workplace Giving. Use language like, “Make a big impact with small changes to your paycheck.”

Leverage the “New Year” Window: The best time to promote payroll giving is during open enrollment (usually October/November) or at the start of the new year. Employees are already logging into their HR portals to adjust benefits; remind them to adjust their giving as well.

Stewardship: When you do receive donor data from these reports, treat these individuals like VIPs. They have invited you into their paycheck—a very personal space. Send special acknowledgments that recognize their recurring commitment. For anonymous donors, use your general newsletter and social media to post broad “Thank You” messages to workplace donors at specific major companies (e.g., “Thank you to our supporters at Wells Fargo!”).

Wrapping Up & Next Steps

The payroll giving process is a powerful, automated engine for nonprofit sustainability. It moves a donor from a transactional relationship to a committed partnership. By understanding the steps—from eligibility and portal access to deduction and disbursement—you can better assist your supporters in navigating the system.

Don’t leave this revenue on the table. Take proactive steps today to ensure your organization is visible, eligible, and attractive to the millions of employees looking to give back through their work.

Next Steps:

  • Audit your presence on major CSR platforms like Benevity and YourCause to ensure your profile is attractive.
  • Add a “Workplace Giving” blurb to your donation confirmation receipts.
  • Send a targeted email to donors who work for major corporations reminding them of this easy way to give.

Turn the passive process of payroll giving into an active strategy for growth. And Double the Donation can help! Request a personalized demo to see this fundraising platform in action.