For any nonprofit development director, the ultimate goal is not just raising money—it is raising predictable money. While galas and end-of-year appeals bring in vital spikes of cash, they are resource-intensive and volatile. The true financial bedrock of a resilient nonprofit is recurring revenue.

Enter payroll giving.

Payroll giving (also known as workplace giving) is the most efficient, sustainable fundraising channel available. It allows employees to pledge a portion of their paycheck to your nonprofit automatically. It acts as a “set it and forget it” mechanism that turns a one-time donor into a lifetime supporter, often with a higher lifetime value (LTV) than almost any other type of contributor.

However, accessing this revenue stream is not as simple as asking a donor for a credit card number. Because the donation is processed through an employer’s payroll system, it is governed by a complex web of rules, regulations, and software limitations.

Understanding payroll giving eligibility is the key to unlocking this potential. You need to know exactly which employees can participate, which legal statuses are required for your nonprofit, and how to navigate the third-party platforms that act as the gatekeepers to these funds.

If you have ever wondered why a donor couldn’t find your organization in their company portal, or why a retiree stopped giving after leaving the workforce, the answer usually lies in eligibility.

In this comprehensive guide, we will break down the barriers standing between you and this lucrative revenue stream. We will cover:

Let’s dive in and demystify the rules of workplace giving.

Part 1: The Mechanics of Payroll Giving (And Why Eligibility Matters)

To understand eligibility, you first need to understand the mechanics of the transaction. Payroll giving is not a direct relationship between a donor and a nonprofit; it is a three-party relationship involving the Donor (Employee), the Employer, and the Nonprofit.

In most modern corporate structures, there is actually a fourth party: the Intermediary (or CSR Platform). Companies like Microsoft or Nike do not write individual checks to thousands of charities every pay period. Instead, they use platforms like Benevity, YourCause, or CyberGrants to process these deductions.

The Flow of Funds

  1. The Pledge: The employee logs into their company’s CSR platform. They search for a nonprofit. Eligibility Check 1: Is the nonprofit in the database?
  2. The Deduction: The employee selects an amount (e.g., $50 per paycheck). The company payroll system deducts this amount post-tax. Eligibility Check 2: Is the employee eligible for this benefit?
  3. The Aggregation: The intermediary collects deductions from all employees and aggregates them.
  4. The Disbursement: The intermediary sends a single lump-sum payment (via check or EFT) to the nonprofit, often with a report detailing the donors.

If eligibility fails at any point in this chain—if the nonprofit has lost its good standing, or if the employee is a contractor rather than full-time staff—the donation never happens. Understanding these checkpoints allows you to troubleshoot issues and market your program more effectively.

Did You Know?

In the United States, payroll giving is typically a post-tax deduction. This means the employee pays taxes on their income first, then the donation is removed. The employee is responsible for claiming this deduction on their personal tax return at the end of the year. This differs from the UK and other regions where “pre-tax” giving is common.

Part 2: Employee Eligibility: Who Can Actually Give?

When you ask your supporters to “sign up for workplace giving,” you need to know who you are talking to. Corporate policies vary wildly regarding who is allowed to access the payroll deduction system.

Full-Time Employees

This is the standard eligibility category. Almost every corporation with a workplace giving program extends participation to full-time, salaried employees.

  • Why: These employees are permanent fixtures on the payroll system, making recurring deductions easy to manage administratively.
  • The Opportunity: If your donor data shows employment at major Fortune 500 companies (Google, Coca-Cola, Home Depot), you can safely assume these individuals are eligible.

Part-Time Employees

Historically, part-time workers were excluded from benefits like matching gifts and payroll giving. However, the landscape is shifting. As companies focus more on Diversity, Equity, and Inclusion (DEI) and employee engagement, many are expanding eligibility to part-time staff.

  • Hourly Thresholds: Some companies restrict eligibility to employees working a minimum number of hours (e.g., 20 hours/week).
  • Retail and Service: Major retailers like Starbucks and Target often have inclusive programs that allow store-level associates (many of whom are part-time) to participate.
  • Strategy: Do not write off donors with lower giving capacities. A part-time employee giving $5 per paycheck is a valuable, sustainable supporter.

The Federal Sector (The CFC)

The United States Federal Government runs the largest workplace giving campaign in the world: the Combined Federal Campaign (CFC).

  • Who is Eligible: This is one of the most inclusive programs available. It is open to all federal civilian employees, members of the military (active duty and reservists), and uniquely, federal retirees. The
  • Mechanism: Donors pledge during a specific “campaign season” (usually September to January) for the following year.
  • Why It Matters: If you are located near a military base or federal agency, a huge portion of your potential donor base is eligible for this specific type of payroll giving.

Retirees

Retirees are a massive, often untapped resource. While they cannot use “Volunteer Time Off” (because they don’t have time off), many legacy companies allow them to continue their financial support through pension deductions.

  • Pension Deductions: Companies like General Electric (GE) and various state government systems allow retirees to deduct donations directly from their monthly pension checks.
  • Matching Gifts: Even if a company doesn’t support direct pension deductions, many still offer matching gifts for retirees. While not strictly “payroll giving,” this is a critical eligibility nuance. A retiree might write you a personal check, and the company will still match it.
  • Strategy: Segment your donor list by age (65+) and ask them about their former employers. You may find they retain eligibility for corporate philanthropy programs.

Ineligible Groups: Contractors and Gig Workers

This is the growing gap in the system. The “Gig Economy” means more people are working as independent contractors or temporary staff.

  • The Hurdle: Because these workers are paid via invoices or 1099s rather than W-2 payroll systems, they typically cannot participate in traditional payroll deduction programs.
  • The Workaround: Modern CSR platforms (like Benevity) are beginning to add “credit card” options within the giving portal. This allows contractors to donate through the company platform—and potentially get a match—even if they can’t use payroll deduction.

Part 3: Nonprofit Eligibility: Does Your Organization Qualify?

Just because a donor wants to give doesn’t mean the system will let them. Corporations act as gatekeepers, vetting organizations to ensure they are legitimate, compliant, and aligned with corporate values.

The 501(c)(3) Requirement

In the United States, the baseline requirement for payroll giving eligibility is being a registered 501(c)(3) public charity.

  • The Database: Intermediaries like Benevity and GuideStar sync directly with the IRS Exempt Organizations database (Publication 78).
  • The Risk: If your organization automatically loses its status (e.g., for failing to file Form 990 for three consecutive years), you will disappear from these portals overnight. Your donors will try to search for you, find nothing, and likely stop giving.
  • Action: Ensure your finance team files your 990 on time, every time. “Good standing” is your ticket to entry.

Educational Institutions

Schools are almost universally eligible, but the type of registration matters.

  • K-12 Public Schools: Often, public schools are not individual 501(c)(3)s; they are government entities. While eligible for tax-deductible gifts, they sometimes struggle to get listed on corporate portals.
  • The Solution: Most schools encourage donors to give to their PTA/PTO or a School Foundation (e.g., “The Austin High School Education Foundation”), which are registered 501(c)(3) entities.
  • Higher Education: Universities are standard recipients. However, donors often need to specify a particular department or fund. Ensure your university is listed with clear designations in the major portals.

Religious Organizations

This is the most common source of confusion. Can a church receive payroll donations?

  • The Rule: Churches are automatically tax-exempt and don’t strictly need to apply for 501(c)(3) status to receive personal checks. However, corporate platforms require a visible IRS determination letter. If a church hasn’t formally applied for 501(c)(3) status, it might not appear in the database.
  • The “Secular” Distinction: Many corporate policies exclude “purely religious” activities (like evangelism). However, they will fund secular community programs run by religious groups, such as food pantries, homeless shelters, or preschools.
  • Strategy: If you are a faith-based organization, ensure your community programs have a distinct presence or even a separate 501(c)(3) status to maximize eligibility.

International Nonprofits

Most US-based corporate giving programs are restricted to US-based nonprofits due to tax laws.

  • Friends Of Organizations: International charities often set up a “Friends of [Charity Name]” entity in the US. This is a 501(c)(3) that accepts funds in the US and grants them to the international entity.
  • Intermediaries: Organizations like GlobalGiving or CAF America act as the US-based recipient. Employees donate to GlobalGiving, and GlobalGiving grants the funds to the international cause.

Part 4: Common Exclusions (The “No-Go” List)

Even with 501(c)(3) status, certain organizations are often flagged as ineligible by corporate CSR policies.

Political and Advocacy Groups

Corporations generally avoid funding political polarization.

  • 501(c)(4) Organizations: These are “social welfare” organizations that can engage in lobbying. They are not eligible for tax-deductible payroll giving.
  • Political Campaigns: Strictly ineligible.

Private Foundations

Payroll giving is designed to support public charities. Private non-operating foundations are typically excluded from these lists.

Discriminatory Organizations

Modern CSR is heavily focused on inclusion.

  • The Policy: Almost every major corporation has an anti-discrimination clause. If your organization discriminates in hiring or service delivery based on race, religion, sexual orientation, or gender identity, you may be blocked from receiving funds.
  • The Check: Some platforms require nonprofits to sign an “Anti-Discrimination Attestation” before releasing funds. Failure to sign means the check sits in limbo.

Part 5: The Gatekeepers (Intermediaries)

You might think you are receiving donations from “Apple” or “Microsoft,” but the check likely comes from a company you’ve never heard of, like The American Online Giving Foundation or UKOGF.

These are the disbursement arms of the major software platforms. Understanding who they are is critical for eligibility verification.

Major Platforms to Know

  • Benevity: The giant in the space. Powers Apple, Google, Microsoft, and Nike.
  • YourCause (Blackbaud): Powers Dell, CVS Health, and Chevron.
  • CyberGrants (Bonterra): Common in banking and pharma (Bank of America, Novartis).
  • America’s Charities: Often handles state and local government campaigns.

The “Claim Your Profile” Strategy

To ensure you are eligible and visible on these platforms, you must “claim” your organization’s profile.

  1. Register: Go to the “Causes” portal for Benevity and YourCause.
  2. Verify: Upload your IRS determination letter and a voided check (for EFT).
  3. Enhance: Add your logo, mission statement, and impact stories.

Why it matters: An unclaimed profile often lacks a logo or clear description. Employees searching for “Animal Rescue” might skip over the generic-looking result in favor of one with a logo and a compelling mission statement. Claiming your profile effectively makes you “more eligible” in the eyes of the donor.

The “Lost Money” Problem

Millions of dollars in payroll giving go unclaimed or uncashed every year. Why?

  • Paper Checks: If you haven’t set up Electronic Funds Transfer (EFT), the intermediary mails a paper check.
  • Bad Addresses: If your address in the IRS database is outdated, the check goes to the wrong place.
  • Eligibility Fix: Regularly logging into these portals ensures your banking and address info is current, keeping you eligible to receive payments.

Part 6: Strategy: How to Maximize Eligibility

Now that you understand the rules, how do you use them to raise more money?

1. Audit Your Donor Data

Run a report in your CRM (Customer Relationship Management) system. Look for email addresses with corporate domains (e.g., @microsoft.com, @boeing.com).

  • Action: Tag these donors as “Payroll Eligible.” Send them a targeted email: “Did you know as a Microsoft employee, you can donate to us directly from your paycheck—and Microsoft will match it?”

2. Create a “Workplace Giving” Page

Don’t make donors guess if they are eligible. Create a page on your website dedicated to workplace giving.

  • Content: List the major local employers that offer these programs.
  • Instructions: “Search for us in your Benevity/YourCause portal using our EIN: 12-3456789.”
  • Search Tool: Embed a corporate giving database (like Double the Donation) that allows donors to type in their company name and instantly see their eligibility for payroll giving and matching gifts.

3. Educate Your Board and Volunteers

Your board members are likely leaders in their companies.

  • Ask: “Does your company offer payroll giving? Is our nonprofit listed as an eligible charity in your portal?”
  • Advocacy: If you aren’t listed, ask your board member to petition their HR department to add you. Getting “whitelisted” by a large employer is a massive win.

Wrapping Up & Next Steps

Payroll giving eligibility is the invisible infrastructure of sustainable fundraising. It is not the glamorous part of the job, but it is the plumbing that ensures the revenue flows. By ensuring your nonprofit meets the criteria, claiming your profiles on the major platforms, and educating your donors about their own eligibility, you can tap into a stream of unrestricted funding that grows with every pay period.

Don’t let technicalities block your funding. Take control of your eligibility today.

Your Action Plan:

  1. Check your 990: Confirm your most recent tax filing is processed and you are in good standing.
  2. Portal Audit: Log into the Benevity and YourCause nonprofit portals. Is your logo there? Is your address correct? Is EFT set up?
  3. Donor Scan: Identify 50 donors in your database who work for major corporations and send them a personal invitation to join your payroll giving program.

Start uncovering your hidden revenue today.