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Aussies giving to charity out of their pay

New way of leaving the middleman out.

Australians who want to donate to charities without profit-seeking middlemen taking a cut can to do it directly and save on tax.

The Australian Charities Fund is hoping to win over more businesses and their workers to donate directly from their pay.

“Often the fundraising model in Australia is quite complex and often there are for-profit fundraisers involved,” fund chief executive Jenny Geddes told AAP.

“(This is) the most efficient way because it’s going direct from your payroll to the charity.

“And because it’s a pre-tax contribution, your tax rate goes down.”

About 3000 businesses and three million employees have access to these “workplace giving programs”, but fewer than 200,000 workers use them.

The fund aims to increase this to one million by 2020, which it says will mean an extra $250 million a year flows to the needy.

“Staff really do seek out a bigger purpose and often a giving program can really help provide that,” Geddes said.

She estimated a $5 donation would only cost an employee about $3.50, going off the average tax rate.

And many employers in the program had agreed to match individual contributions.

“Your $3.50 has become $10, which is such a wonderful way to support charity,” Geddes said.

The Australian Workplace Giving Awards, announced on Thursday, included nominations for the Commonwealth Bank, JB Hi-Fi, Seek, and Australia Post.

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