Common use of Rationale and Background Clause in Contracts

Rationale and Background. Responding to the Government’s Payroll Giving consultation, a large number of respondents made requests to institute a Service Level Agreement regulating the work between Payroll Giving Agencies and the wider charity sector. Another request coming from this consultation was for more transparency around the process as well as disbursement reports in a standardised format. It was suggested that a Service Level Agreement could also be used to increase the transparency and information flow between charities and Payroll Giving Agencies. In the government’s response document there was a commitment to pursue an agreement that could provide greater clarity on how well Payroll giving operates. Subsequently a number of meetings were held between the various parties resulting in this document. This document aims to address these points, with the overriding principle to see an increase in take-up of Payroll Giving and donations being received by charities. To better reflect the voluntary nature of this agreement it has been framed as a Memorandum of Understanding. This voluntary agreement has been drawn up following extensive contacts between Government, Payroll Giving Agencies and representatives from the charity sector. Whilst not a legally binding document its authority is derived from its endorsement by the participants. Payroll Giving Agencies, the Government and charities agree to work together constructively in our complementary roles. The parties here would welcome further participants in this agreement, including from charities, Payroll Giving Agencies, both existing and new and their service delivery partners. As Payroll Giving Agencies update and invest in their systems and processes, even more improvements may become possible. To that end the participants may wish to review and amend some aspects of this agreement, in the same manner of consensus and constructive engagement. This endorsement represents a concrete expression of goodwill and partnership between Payroll Giving Agencies and the wider charity sector. Disbursement reports are provided by Payroll Giving Agencies to charities that request, and in most cases, pay for them. They give detailed information on individual donations. Currently charities may receive reports from multiple Payroll Giving Agencies which, whilst providing common information, are formatted and presented differently. During the consultation, a proposal was made to standardise the format of these reports to reduce the costs for the charities and increase clarity. This section sets out how we intend to pursue this and how Payroll Giving Agencies are responding to the request by standardising their reports where possible and practical. By lowering the costs associated with charities processing Payroll Giving information it is hoped to increase Payroll Giving’s attractiveness and make the money donated more effective. Not every Payroll Giving Agency will be able to complete every column. Some do not collect email addresses from donors, others may not have the systems to report on net, gross, match funded and other amounts separately. To accommodate these differences, some columns will have all blanks from certain Payroll Giving Agencies, whilst those who can provide a greater level of detail can do so without compromising the agreed format. Also where an agency can provide flexible reporting, the intention is to have a report in this format as a preset option. The following has been designed in conjunction with the major Payroll Giving Agencies to ensure that the changes can be introduced in a planned co-ordinated manner with as little disruption or transitional costs as practical.