Summary
Content
Gusto Giving allows you to support charities you care about by donating directly from your paycheck. We'll handle the payroll deductions, Form W-2 reporting, and donation processing through our partner, FrontStream.
How it works
With Gusto Giving, employees can donate parts of their paycheck to non-profits of their choice from FrontStream’s database of 501(c)3 IRS-recognized organizations.
Employees can make a one-time or recurring donation. Employers have the option to match donations. If they do, employees will see it on their pay stub.
We get $0 from contributions and do not charge additional fees for charitable transactions.
W-2 reporting
Donations are 100% tax-deductible.
We automatically report annual charitable donations in Box 14 of employees’ Form W-2. This means employees do not need to keep receipts when donating to charities through Gusto.
View donations in Gusto
To view past and upcoming donations:
- Sign in to Gusto.
- In the left menu, go to Giving. Here you can see all upcoming donations.
- To view past donations, click Donation history.
Pay stubs include the donation amount, name of the charity, and the employer match, if any.
Donor information shared with the charity
If the charity signs up for a FrontStream account (required for electronic funds transfer (EFT) deposits), they can view a donor report that includes the employee's first and last name. For charities without a FrontStream account that get check payments, they will not be able to view employee names.
When employees donate to charities through their paycheck, the company has the option to match donations. Follow these steps to choose a percentage to match. You can also set an annual contribution limit, which caps the amount the company will match per employee.
- Sign in to your Gusto admin account.
- Click the Benefits tab.
- Under "Add Other Benefits," click Other/Charity.
- Click Charity Matching.
- Select the charity matching percentage.
- Select your annual contribution limit per employee.
- Click Save.
The next time you run payroll, employees who are giving with Gusto will see charitable amounts deducted from their paycheck, and your company's bank account will be debited for the matching percentage. We'll send this to FrontStream, who will process the donation for the charity in the following month.
Employees can view upcoming and past donations anytime from the Giving section of their employee account.
About FrontStream, our donations partner
All donations are processed through FrontStream, an industry leader in online donations. A little about them:
- Charities can receive donations whether or not they have a free account with FrontStream.
- Donations made to charities that do not have a FrontStream account are issued by check and incur a check issuance fee. For this reason, we recommend making sure organizations are signed up for ACH distribution.
- To add an organization, have them contact FrontStream by email at vetting@frontstream.com.
- Donations made to charities that do not have a FrontStream account are issued by check and incur a check issuance fee. For this reason, we recommend making sure organizations are signed up for ACH distribution.
- FrontStream has a 3.5% service fee per donation that is used to pay banks, credit card companies, and other associated costs of processing donations. See FrontStream's Terms & Conditions for more details.
- By donating, you're creating a FrontStream account. Your email will be shared with FrontStream and the nonprofit you selected.
Gusto receives $0 from contributions and takes no additional fee from transactions.