Payroll Giving Letters: Templates to Secure Ongoing Support

Payroll Giving Letters- Templates to Secure Ongoing Support

In the world of nonprofit fundraising, the ultimate goal is sustainability. While annual galas and end-of-year giving campaigns provide essential boosts in revenue, the day-to-day operations of your mission rely on steady, predictable cash flow. This is where payroll giving becomes a game-changer, and payroll giving letters can help you increase funding through this donation channel!

Payroll giving transforms the way donors (and their companies) support your organization. Instead of writing a check once a year, supporters pledge a small portion of their paycheck to be automatically deducted and sent to your nonprofit. For the donor, it is seamless and budget-friendly. For your nonprofit, it represents a reliable stream of unrestricted income that builds long-term financial health.

However, despite its benefits, payroll giving remains one of the most underutilized fundraising channels. Why? Because many donors simply do not know it is an option. To bridge this gap, you need a proactive communication strategy. In this guide, we’ll cover:

By incorporating strategic payroll giving letters into your outreach, you can educate your supporters, simplify the enrollment process, and turn passive donors into active, recurring partners. In this comprehensive guide, we will explore the mechanics of payroll giving, strategies for communication, and provide copy-and-paste templates for every donor scenario.

What Is Payroll Giving?

Before you can effectively ask for payroll donations, it is crucial to understand the mechanism behind them so you can explain the benefits clearly to your supporters.

Payroll giving is a method of donating to charity directly from an employee’s salary. It allows individuals to pledge a specific amount (e.g., $10, $50, or 1% of their salary) from each paycheck.

The process typically follows these steps:

  • Employer Enrollment: The company partners with a payroll giving agency or platform to integrate the giving option into their payroll systems.
  • Employee Opt-In: Employees voluntarily sign up, usually through an HR portal, and select your nonprofit as the recipient.
  • Automatic Deduction: The donation is deducted from the employee’s salary, often before tax is calculated, making it a tax-efficient way to give.
  • Transfer: The employer or platform consolidates the funds and transfers them to your nonprofit.

Did You Know? Payroll giving is incredibly “sticky.” Because the donation happens automatically in the background, payroll donors tend to have higher donor retention rates than those who give via credit card or check.

Why Letters Are Your Best Tool for Recruitment

You might assume that if a donor’s company offers payroll giving, the donor already knows about it. Unfortunately, this is rarely the case. Corporate benefits packages are dense, and charitable giving options often get buried in the fine print of employee handbooks.

Your payroll giving letters serve as the bridge between the donor’s desire to give and the tool that makes it easiest for them to do so.

Effective letters accomplish three things:

  • Awareness: They inform the donor that their company likely has a program in place.
  • Simplicity: They explain that small, regular deductions are easier to manage than large, one-time gifts.
  • Action: They provide clear instructions on how to enroll, removing the friction from the process.

Currently, over 6 million U.S. employees contribute through payroll giving, generating over $173 million annually. By sending targeted letters, you are inviting your supporters to join this powerful movement of sustainable philanthropy.

The Strategic Timing of Payroll Giving Outreach

When you ask is just as important as how you ask. Payroll giving is a commitment to recurring support, so you want to approach donors when they are feeling financially reflective or particularly connected to your mission.

1. The “New Year” Resolution (January)

January is a time when people review their finances and set goals for the year. Promoting payroll giving as a “budget-friendly” way to make a difference all year long is highly effective during this window.

2. Open Enrollment Season (October/November)

Most companies hold their benefits open enrollment in the fall. Employees are already logging into HR portals and reviewing their paychecks. This is the perfect time to remind them to check the “charitable giving” tab in their benefits portal.

3. Upon Acquisition of a New Donor

When a donor makes their first gift, they are at their peak level of engagement. Including a mention of payroll giving in your welcome series can plant the seed for future recurring support.

4. Corporate Campaign Periods

Many large companies hold “Giving Months” (often in the fall, coinciding with United Way campaigns or similar initiatives). Timing your letters to align with these internal corporate pushes can double your visibility.

Quick Tip: Don’t forget the “P.S.” strategy. Even in standard fundraising appeals, include a postscript reminding donors: “Want to make your impact go further? Ask your HR department about payroll giving!”

Template 1: For Existing Donors With Known Eligibility

If you utilize a corporate giving database or have collected employer data from your donors, you can segment your list. This template is for supporters whom you know work for companies with payroll giving programs (like Apple, Google, or many federal agencies).

Subject: [Donor Name], a seamless way to support [Nonprofit Name]

Dear [Donor Name],

Thank you for being such a dedicated supporter of [Nonprofit Name]. Your recent gift of [Amount] has already helped us [Brief Impact Statement, e.g., provide 500 meals to local families].

We know you care deeply about our mission, and we want to make supporting it as easy as possible for you. That is why I wanted to highlight a fantastic benefit offered by your employer, [Company Name].

Our records show that [Company Name] offers a Payroll Giving program. This allows you to set up automatic donations directly from your paycheck.

Why consider payroll giving?

  • It’s Tax-Efficient: Donations are often deducted pre-tax, meaning a portion of the money that would have gone to taxes goes to our mission instead.
  • It’s Budget-Friendly: Spreading your contribution out over the year (e.g., $10 per paycheck) can be easier to manage than a single lump sum.
  • It’s Sustainable: Recurring support allows us to plan ahead and respond to crises faster.

How to enroll:

  1. Log in to your [Company Name] employee benefits or CSR portal.
  2. Search for [Nonprofit Name] or use our Tax ID: [Insert EIN].
  3. Select your deduction amount and frequency.

It takes just a few minutes to set up, but the impact lasts all year long.

Thank you for everything you do!

Sincerely,

[Your Name] [Your Title]

Template 2: For Existing Donors With Unknown Eligibility

For the majority of your database, you likely do not know where they work. This letter needs to be educational, explaining the concept of payroll giving and encouraging them to investigate their own benefits.

Subject: A smarter way to give to [Nonprofit Name]

Dear [Donor Name],

We are so grateful for your continued support of [Nonprofit Name]. Because of you, we are able to [Brief Impact Statement].

I’m writing today to share a way to support our cause that is easy on your wallet and huge for our mission: Payroll Giving.

What is it? Payroll giving allows you to donate a small amount from each paycheck directly to the charities you care about. It is “set it and forget it” philanthropy that provides us with the steady, reliable funding we need to keep our programs running.

Did you know? Over 6 million employees currently use payroll giving to support their favorite causes. Many find it is the most convenient way to give because the donations are automatic and often tax-deductible immediately.

Could you be eligible? Many companies offer this program but don’t widely advertise it. We encourage you to:

  • Check your employee handbook or HR portal.
  • Search for “Workplace Giving” or “Payroll Deductions.”
  • Ask your HR representative if you can donate to [Nonprofit Name] through payroll.

If you find that your company participates, please let us know! We would love to thank you properly and ensure your gifts are being routed correctly.

Thank you for helping us build a better future.

Best,

[Your Name] [Title]

Quick Tip: If your nonprofit is registered with major workplace giving platforms like Benevity, Blackbaud, or CyberGrants, mention this in your letter! It adds legitimacy and makes it easier for employees to find you.

Template 3: For Prospective Donors (Acquisition)

Payroll giving is an excellent tool for acquiring new donors who might not be ready to write a large check but are willing to commit to a small deduction from their salary. This letter is best used when you are invited to speak at a workplace or are included in a company’s charity catalog.

Subject: Make a difference, right from your paycheck

Dear [Company Name] Employee,

We are thrilled to be featured as a charity partner for [Company Name]’s workplace giving campaign!

At [Nonprofit Name], we are working hard to [Brief Mission Statement]. But we cannot do it alone. We rely on community members like you to power our work.

We know life is busy. That is why we are inviting you to support us through Payroll Giving.

By pledging just a few dollars from each paycheck—perhaps the cost of one cup of coffee—you can make a massive difference over the course of a year. Because these donations are automatic, you provide the sustainable foundation we need to [Specific Goal, e.g., keep the shelter open 24/7].

How to join us: Simply log into your [Company Name] giving portal, search for [Nonprofit Name], and select your payroll deduction amount.

  • $5 per paycheck provides [Impact Example, e.g., school supplies for one student].
  • $10 per paycheck provides [Impact Example, e.g., a week of hot meals].
  • $20 per paycheck provides [Impact Example, e.g., life-saving medication].

Together, small contributions add up to incredible change. Thank you for considering us as your charity of choice!

Sincerely,

[Your Name] [Title]

Template 4: Advocacy Tools for Ineligible Donors

What if a donor wants to give via payroll, but their company doesn’t have a program? Empower them to be an internal champion. Employees have significant influence over corporate culture, and HR departments are often looking for ways to improve employee engagement.

Subject: Help bring payroll giving to your workplace!

Dear [Donor Name],

Thank you for your interest in supporting [Nonprofit Name] through payroll giving! We understand that your current employer does not yet offer a workplace giving program.

However, that doesn’t mean the door is closed. Many companies start these programs specifically because employees ask for them. Research shows that workplace giving boosts employee morale and retention, making it a win-win for the company and the community.

If you feel comfortable, consider sending the note below to your HR director or CSR manager to express your interest.

Subject: Inquiry regarding workplace giving programs

Message:

Hi [HR Contact Name],

I recently made a donation to [Nonprofit Name], a cause I care deeply about. I learned that many companies in our industry offer “payroll giving” programs, where employees can authorize automatic charitable deductions from their paychecks.

Does our company currently offer anything like this? Or would we be open to exploring it?

It seems like a fantastic way to support employee engagement and help us give back to our local community easily. I would love to chat about how we might be able to implement something similar here.

Thanks,

[Employee Name]

Thank you for advocating for us!

Sincerely,

[Your Name]

Best Practices for Writing High-Converting Letters

To ensure your payroll giving letters drive actual results, keep these best practices in mind:

1. Emphasize the “Double Dip” (Matching Gifts)

Payroll giving and matching gifts are natural allies. Many companies that offer payroll deductions also match those donations. In your letters, remind donors: “Your payroll deduction could be doubled! Check if your employer offers a matching gift program to multiply your impact without spending an extra dime”.

2. Focus on “Small Steps, Big Impact”

The psychological barrier to giving $240 is high. The barrier to giving $10 per paycheck (twice a month) is low. Frame your ask around the smaller, manageable amount, but remind them of the cumulative impact.

3. Use Visuals and Buttons

If you are sending these via email, use a clear “Donate via Payroll” button that links to your “Ways to Give” page. Include a graphic showing how $10/paycheck adds up to a significant yearly contribution.

4. Highlight Tax Benefits

Always mention the potential for pre-tax giving. For financial-minded donors, the ability to lower their taxable income while supporting a cause is a major selling point.

5. Say Thank You

If a donor signs up, they are committing to you for the long haul. Ensure you have a system in place to thank them immediately, and then periodically (quarterly or annually) to report on the impact of their cumulative giving.

Wrapping Up & Next Steps

Payroll giving letters are a low-cost, high-reward tool in your fundraising arsenal. By educating your supporters about this convenient giving method, you can unlock a stream of sustainable, unrestricted revenue that allows your nonprofit to plan for the future with confidence.

Remember, you are not just asking for money; you are offering a service. You are giving donors a tax-efficient, hassle-free way to live out their values every single payday. Start drafting your payroll giving letters today, and build a foundation of recurring support that will sustain your mission for years to come.

Ready to maximize your corporate revenue? Double the Donation’s industry-leading database can help you identify payroll giving eligibility for thousands of companies. Request a personalized demo today to get started!

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