The obvious answer would be that employer NI savings should be re-invested into the charitable cause. With media scrutiny as to where donor money is spent, and a particular focus on pension expenditure, it seems brave (in absence of a better word) to deprive beneficiaries from this pension related income stream. Employer NI savings should be viewed as ‘organic fundraising’, if you will.
Like corporations, the charity sector has shareholders – their donors; and every decision must be made with the shareholder in mind. In the private sector, employer NI savings equates to an increase in profit (sharing savings with employees is a rarity); in the charity sector, employer NI savings should equate to an increased income for beneficiaries (not an increase in employee remuneration).