Payroll Giving Luxembourg is managed by a consortium of Luxembourg NGOs approved by the Minister of Cooperation. Initially in 2015, it’s the NGO PADEM, wishing to diversify its funding by offering an innovative tool to the companies, which had the idea to import from the USA the idea of Payroll Giving to adapt it to Luxembourg laws and culture.
PADEM had joined Securex, a company specialised in payroll and human ressources in Luxembourg. They also joined Telindus, which has developed the software function of Payroll Giving in their famous payroll software, Apsal, most used payroll software in Luxembourg. This software function was the essential requirement to develop Payroll Giving, because it allows donations on salary to be automatic, with no waste of time for Human Resource Department of the companies.
For PADEM, the objective was twofold:
– that other NGOs, also working in the field of Development and Humanity, can offer Payroll Giving to their donor companies, and to their donors;
– proposed and disseminated by other NGOs, Payroll Giving would experience a new development, a new boom in its growth.
2019 was the year of the creation of this consortium, and the related resources: website, communication materials, event organisation. PADEM remains the guarantor of respect for the Payroll Giving spirit, it continues to ensure the development and technical implementation of the Payroll Giving, and consistency in the proposed actions.
Since 2019, Payroll Giving Luxembourg is managed, developed and proposed by a group of Luxembourg NGOs, deciding by mutual agreement on the actions to be taken to ensure the development of Payroll Giving, and donors the best possible payday donation tool.
The PAYROLL GIVING is managed collegially by a consortium composed of NGOs accredited by the Ministry of Foreign and European Affairs (MAEE). This agreement, which is a guarantee of good execution of projects and good management of funds, is to be renewed every 3 years. In particular, it makes it possible to receive co-financing from the MAEE for projects in the South or for Education and Outreach projects in the North. All donations to approved NGOs may be tax deductible provided that the total annual amount is at least 120 euros and does not exceed 1 million euros.
PAYROLL GIVING Luxembourg was originally an initiative of the NGO PADEM. Each NGO in the consortium is signatory to a partnership agreement with PADEM, including reciprocal transparency, regular participation in monitoring meetings and annual events, the payment of a fee of 5% of the donations collected to PADEM to cover its management costs and the exchange of communication services, the common use of the logo and slogan.
Morever, the consortium NGOs undertake to comply with a charter, which includes the following main elements:
- Communicate on the key elements of Payroll Giving before its implementation.
- Issue a tax receipt for each person who contributed to the Payroll Giving.
- Communicate regularly on the progress of the supported project.
- Do not charge a management fee or set up Payroll Giving.
- Do not use Payroll Giving outside Luxembourg territory.
Membership criteria for NGOs
- Be accredited by the MAEE.
- Sign and abide by the Partnership Agreement.
- Sign and abide by the Charter.