Matching gift programs are a type of corporate philanthropy where companies match their employees' donations to eligible nonprofit organizations. The match rate can vary depending on the company's policy, but it is usually 1:1, meaning that the company will match the employee's donation dollar-for-dollar. Some companies may offer a higher match rate, such as 2:1 or 3:1, or may have a minimum or maximum donation amount that they will match. Matching gift programs are beneficial for both the nonprofit organization and the employee donor. The nonprofit receives additional funds while the employee's donation goes further, potentially doubling or tripling in value. Matching gift programs typically involve the following steps: The matching gift process can take several weeks to complete depending on the company's policies and procedures. Nonprofit organizations can track the progress of the matching gift request and follow up with the company if needed. Matching gift programs can take different forms, including: Volunteer Grant Programs - Some companies offer volunteer grant programs where they donate money to nonprofits based on the number of hours their employees volunteer. The donation amount can vary depending on the company's policy. Retiree Matching Gift Programs - Some companies extend their matching gift programs to retirees, allowing them to continue to support nonprofit organizations even after they have left the workforce. Board Matching Gift Programs - Some companies offer matching gifts for donations made by the board of directors members. Matching gift programs can be initiated by either the employee or the nonprofit organization. In most cases, it is up to the employee to initiate the request for a matching gift. However, nonprofit organizations can also promote matching gift programs to their donors and provide information on how to submit a request to their company. Some nonprofit organizations have matching gift coordinators who can assist donors with the process. Matching gift coordinators can also track the progress of matching gift requests and follow up with companies if needed. Matching gift programs offer several benefits for nonprofit organizations, including: Matching gift programs can help nonprofits increase their donations and revenue. By encouraging employees to donate and providing a match, nonprofits can potentially double or triple the value of each donation. This can have a significant impact on their overall fundraising efforts. Matching gift programs can also improve donor engagement and retention. Donors are more likely to continue supporting nonprofit organizations if they feel that their donations are making a meaningful impact. By offering matching gifts, nonprofits can demonstrate to donors that their contributions are valued and can make a difference. Matching gift programs can also enhance a nonprofit organization's public image and brand awareness. When companies match their employees' donations, they are essentially endorsing the nonprofit organization and its mission. This can lead to increased visibility and positive exposure for the nonprofit organization. Nonprofit organizations must meet certain criteria to be eligible for matching gift programs. Companies typically have guidelines and restrictions on which nonprofits to match donations for. Some common eligibility criteria include: Companies may limit their matching gift programs to specific types of nonprofit organizations, such as: 501(c)(3) Organizations - Many companies will only match donations to 501(c)(3) organizations, which are tax-exempt nonprofit organizations recognized by the Internal Revenue Service (IRS). Educational Institutions - Some companies limit their matching gift programs to institutions such as colleges and universities. Health-Related Organizations - Some companies limit their matching gift programs to health-related nonprofit organizations, such as hospitals and medical research foundations. Companies may also have eligibility criteria for donors, such as: Employee Status - Some companies may require that the donor be a current employee of the company to be eligible for a matching gift. Donation Amount - Some companies may have a minimum or maximum donation amount that they will match. Companies typically have guidelines and restrictions on their matching gift programs. Some common guidelines include: Match Rate - The match rate can vary depending on the company's policy, but it is usually 1:1, meaning that the company will match the employee's donation dollar-for-dollar. Some companies may offer a higher match rate, such as 2:1 or 3:1. Deadline - Companies may have a deadline for submitting matching gift requests, such as 90 days from the date of the employee's donation. Matching Gift Limits - Companies may have a limit on the total amount of matching gifts they will provide each year or for each employee. Nonprofit organizations can take several steps to promote matching gift programs to their donors, including: Include Matching Gift Information on Donation Forms and Receipts - Nonprofit organizations can include information about matching gift programs on their donation forms and receipts. This can help donors understand the benefits of matching gifts and how to submit a request to their company. Send Targeted Emails - Nonprofit organizations can send targeted emails to donors who work for companies with matching gift programs. These emails can provide information on how to submit a matching gift request and the impact that their donations can have. Social Media Campaigns - Nonprofit organizations can use social media platforms to promote their matching gift programs. They can create posts and graphics highlighting the benefits of matching gifts and how to submit a request. Partner With Companies - Nonprofit organizations can partner with companies to promote their matching gift programs. They can provide information about their programs to the company's employees and offer to assist with the matching gift process. Make It Easy- Nonprofit organizations should make it easy for donors to submit matching gift requests. They can provide step-by-step instructions and offer assistance if needed. Follow-Up - Nonprofit organizations should follow up with donors after they make a donation to remind them about matching gift programs and provide information on how to submit a request. Matching gift programs are valuable for nonprofit organizations to increase donations, improve donor engagement and retention, and enhance their public image and brand awareness. Nonprofit organizations can promote matching gift programs to their donors and provide assistance throughout the matching gift process to maximize donations. Eligibility criteria for nonprofit organizations and donors vary by company, so it is important to research specific companies' matching gift program guidelines. By taking steps to promote matching gift programs and educating donors on their benefits, nonprofit organizations can maximize their fundraising efforts and make a greater impact on their missions and programs. If you are looking to improve your nonprofit organization's financial strategy further and increase your donations, consider hiring a financial advisor who can provide tailored advice and guidance. What Are Matching Gift Programs?
How Matching Gift Programs Work
1. Employee Makes a Donation - The employee makes a donation to an eligible nonprofit organization.
2. Employee Checks Eligibility - The employee checks if their company has a matching gift program and if the nonprofit organization they donated to is eligible.
3. Employee Submits a Request- If the nonprofit organization is eligible, the employee submits a request to their company's matching gift program.
4. Company Verifies Donation and Nonprofit Eligibility - The company verifies the employee's donation and the nonprofit organization's eligibility.
5. Company Issues a Match - If everything checks out, the company issues a match to the nonprofit organization.Types of Matching Gift Programs
How Matching Gift Programs are Initiated
Benefits of Matching Gift Programs for Nonprofit Organizations
Increased Donations and Revenue
Improved Donor Engagement and Retention
Enhanced Public Image and Brand Awareness
Eligibility for Matching Gift Programs
Types of Nonprofit Organizations Eligible for Matching Gift Programs
Eligibility Criteria for Donors
Corporate Matching Gift Program Guidelines
Tips for Nonprofit Organizations to Promote Matching Gift Programs
Communication Strategies
Matching Gift Program Promotion Methods
Best Practices for Promoting Matching Gift Programs
Conclusion
Matching Gift Programs FAQs
Matching gift programs are corporate giving programs that match employee donations to eligible nonprofits or educational institutions.
Eligibility for matching gift programs varies by company but typically includes full-time and part-time employees and sometimes retirees and board members.
Eligible nonprofits for matching gift programs typically include 501(c)(3) organizations, schools, and some cultural and environmental organizations.
The amount of the match varies by company and can range from a dollar-for-dollar match to a two-to-one match or more. Some companies also have annual or per-employee giving limits.
To participate in your employer's matching gift program, you must check if your company offers the program and review its guidelines. Typically, you will need to complete a form to request a match for your donation and submit it to your company's matching gift program coordinator.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
