Now here's an interesting UK initiative around bonuses.
And it's French bank BNP Paribas leading the way.
Here's the internal communication:
'For the first time, BNP Paribas is able to offer you the opportunity to sacrifice part of your bonus in favour of a charity nominated by the bank. The two chosen charities are the NSPCC, the UK Charity of the Year, and the BNP Paribas Group’s Rescue and Recover Fund, which supports people affected by humanitarian disasters. This is a simple and efficient way to donate and will ensure your money goes much further as the charities will benefit from tax and National Insurance savings and, in the case of the Rescue and Recover Fund, the amount that you sacrifice will be doubled* by BNP Paribas. We understand that BNP Paribas are the first bank to offer such a scheme.
How much can I give and how does it work?
You can elect to sacrifice any amount from £100 upwards – complete th(e) form and return it to HR by 18 February 2013 (further details on the form). Your bonus will be reduced by the amount you sacrifice and the bank will make an employer contribution to the charity.
And how does it go further?
If you are a 40% tax payer and decide to sacrifice £100 of your bonus to one of the charities, it will in fact only equate to £58 of take-home pay but it would mean a lot more to the charity. For example:
- The NSPCC would receive £113.80 (almost double the cost to you)
- The Rescue and Recover Fund would receive £227.60 – this is because BNP Paribas Group are matching all donations to this fund (almost four times the cost to you)
For 20% and 50% tax payers, the charities would receive the same amounts but your take-home pay equivalent would be £68 and £48 respectively.
Can I nominate a charity to receive my donation?
Due to HM Revenue & Customs rules, this scheme can only be applied to charities chosen directly by BNP Paribas.
The amount you decide to sacrifice can only come from the cash element of your bonus and not from any other part such as deferred compensation.
If you have any questions, please contact the Pensions and Benefits team at xxxxxxxx
* A total of €500,000 of matching funds is available from BNP Paribas'.