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Are you looking for a simple yet effective way to increase your nonprofit's fundraising revenue? Corporate donation matching is a powerful tool that many organizations overlook. By tapping into this funding source, you can increase the impact of your donors' contributions without asking them to give more out of their pockets.
We'll walk you through the basics of donation matching and show you how to make the most of these programs. You'll learn best practices for promoting donor matching programs to donors and tips on qualifying for the top matching gift companies.
Table of Contents
Basic Guidelines of Corporate Matching Gift Program
How Does Donation Match Work? Process of Collecting Matching Gifts
How to Promote Matching Gifts to Get More Donations: 4 Best Practices
Top 5 Companies that Match Donations of Employees to Nonprofits
Final Words on Donation Matching
What is Donation Matching?
In a corporate donation matching program, employers match their employees' contributions to eligible nonprofits, effectively increasing the impact of each donation. This fundraising method has grown in popularity as it benefits all parties involved:
- Nonprofits receive increased funding.
- Employees see their contributions go further and make a bigger impact.
- Companies foster a culture of giving back.
Studies by Double the Donation, show that 84% of donors are more likely to give and contribute larger amounts when a match is offered, making matched funding a powerful tool for nonprofits to boost their fundraising revenue.
For instance, if a company employee donates $50 to a local animal charity, the matching gift would be the company’s additional donation of $50. Instead of a one-time $50 donation from the employee, the charity receives $100.
Companies will match cash donations only, not in-kind donations. They may also have guidelines related to the kinds of organizations they donate.
Benefits of Donation Matching For Nonprofits
Employees who request donation matches from their companies essentially give the nonprofit free marketing and the chance to explore corporate sponsorship opportunities.
A company that matches employee donations might be interested in exploring sponsorship opportunities, such as offering volunteer support, in-kind contributions, and other forms of collaboration.
Benefits of Matching Donations for Companies
From the corporate perspective, donating to nonprofits is more than just a part of corporate social responsibility (CSR). Companies do this to increase employee satisfaction, build a positive reputation, and position themselves as desirable workplaces.
According to Charities.org, 71% of employees consider a “giving culture” as one of the most essential ways to create genuine camaraderie at work.
Many businesses endorse causes they align with, leveraging tax bill savings and creating opportunities within communities.
Basic Guidelines of Corporate Matching Gift Program
While corporate matching gift programs share similarities, each company establishes its own rules and guidelines. Understanding the parameters helps nonprofits maximize participation.
Most have minimum and maximum match amounts, only include specific nonprofits, require proper documentation, and have submission deadlines. Following the basic guidelines ensures your organization and donors qualify.
Match Ratio
Every company follows a different ratio to match their employees' donations.
The majority matches at a 1:1 ratio, but others have significantly different standards. For instance, some companies will give $0.50 for every dollar its employees contribute. Others will give as much as $4 or $3 for every dollar the employee donates, matching at a ratio of 4:1 or 3:1.
The match ratio will also depend on the employee's status, whether full-time, part-time, or retiree. Full-time and retired employees can expect a higher matching donation.
Minimums and Maximums
Companies apply minimum and maximum limits to their corporate matching gift programs.
The minimum limit usually starts at $25 but can be as low as $1 or as high as $100, depending on the specific program. The maximum amount ranges from $1,000 to $15,000. This donation amount will vary by company, employee, and charity type.
Nonprofit Eligibility
The nonprofit chosen by the employee can affect the match the company offers.
For example, a company can agree to match donations to educational nonprofits at a 4:1 ratio, while contributions made to cultural organizations may be matched at a 1:1 ratio.
In most cases, faith-based organizations are off-limits. These religious organizations, like churches, must rely on other fundraising ideas.
Submission Deadlines
Each company has a different deadline for matching gifts. Awareness of these dates ensures you don't miss out on a matching donation opportunity.
Standard match request submission deadlines are as follows:
- End of January, February, or March in the year after when the contribution was made.
- A set number of months after the donation date, often 3 to 12 months.
- The end of the calendar year.
How Does Donation Match Work? Process of Collecting Matching Gifts
1. Donor Gives a Donation
The first component will always be the employee's initial donation. There is no matching gift unless your donor contributes to your nonprofit.
2. Submit a Matching Gift Request
A donor must request a matching gift from their employer. Your nonprofit can not make the request, even if the donor is eligible.
You can streamline the process by embedding a matching gift tool on your donation page to help donors find information on their corporate matching gift programs if they have one.
3. Employer Checks Donation Matching Eligibility
Companies have dedicated members who work on processing matching gifts. They assess whether the donor contribution falls within the specified minimum and maximum amounts, check the employee’s employment status, and ensure the program guidelines cover the nonprofit.
4. Follow Up with Nonprofit
Once the employee’s donation is reviewed, the company will contact your nonprofit to confirm the donation amount, date, and donor details.
5. Matches the Gift
If all the information and forms are in line, the company matches the gift by sharing the same amount or more/less, depending on its matching ratio.
How to Promote Matching Gifts to Get More Donations: 4 Best Practices
1. Build a Dedicated Matching Gifts Page
The major hurdle to collecting matching gift revenue is the lack of awareness among donors. Often, donors are unaware of their matching eligibility and could benefit from understanding the perks of matching gifts. Adding a dedicated page to your website will increase awareness on matching gifts.
- Use this page to explain matching gifts and how the process works.
- Create a simple instructional video or use infographics to inform readers.
- Add your collected matched donations and their impact on this page, encouraging more visitors to take action.
- Link back to this gift-matching page in all communications moving forward.
- Provide an embedded search tool or link to the gift-matching tool so your donors can check their eligibility.
- Add a catchy CTA button encouraging people to donate and then get their donation matched.
2. Promote Your Match on the Donation Page
Your donation page is the best place for marketing matching gifts, allowing you to integrate donation matching directly into the online giving experience.
Include a snippet about gift matching on the donation form, taking donors to the created matching gifts page.
Embed a matching gift search tool right on the donation page. While a supporter actively contributes to your organization, that is the perfect time to ask them about their employer and inform them about their match eligibility.
3. Highlight Your Match in Fundraising Appeals
Mentioning the matching gifts in your fundraising appeals maximizes your fundraising efforts and raises funds. Include donation matching in your communications from your newsletter to social media posts.
Social media enables nonprofits to connect with their supporters and raise more money directly. Over 55% of people engaging with nonprofits on social media take action and contribute to their cause.
Marketing for Donation Matching
- Create monthly emails about matching gifts that you send. Explain how the matching fund works, include impact-focused testimonials, and share the link to the matching gifts page.
- On your social media, spotlight the donors who had their donations matched. This will inspire other donors to check their match eligibility and match their gifts.
- Host webinars, workshops, or lunch-and-learns highlighting the matching donation program. Invite guest speakers from companies or donors who have benefited from these programs.
4. Make it a Part of the Follow-Up Process
Most nonprofits thank donors after they donate to the cause. Make the donation matching a part of your follow-up process. It serves as another opportunity to remind them about gift matchings.
After they donate, display or share a thank you message with a reminder to check the gift-matching programs. Focus on following up with a personalized message highlighting matching donations' benefits. Give your donors every chance to take their giving further with matching gift programs.
Here’s our guide on sending thank you letters for donations →
Top 5 Companies that Match Donations of Employees to Nonprofits
- Microsoft’s Matching Gift Program
- Soros Fund Management Matching Gift
- State Street Corporation Donation Match
- Johnson & Johnson’s Matching Gift Program
- Coca-Cola Company Gift Matching
1. Microsoft’s Matching Gift Program
Match ratio: 1:1
Minimum match amount: $1
Maximum match amount: $15,000
Who's eligible: Full-time and part-time employees
Microsoft is widely known for having one of the most notable gift-matching programs. Various charities reap the benefits of Microsoft's gift-matching programs due to company-matched employee donations. These companies include US-based, tax-exempt 501 (c)(3), or international-equivalent public charities.
To access the matching gift program, nonprofits must meet Microsoft Philanthropies' eligibility guidelines and register with Benevity, its giving service provider.
Employees have up to 12 months following their initial donations to make the matching gift request.
2. Soros Fund Management Matching Gift
Match ratio: 2:1 and 3:1
Minimum match amount: $25
Maximum match amount: $100,000
Who's eligible: Full-time employees
Soros Fund Management features the most generous corporate matching gift programs. The company's 3:1 matching ratio for employees and 2:1 for partners strongly incentivises employees to support the cause they care about.
To qualify for the match, donors must submit requests for corporate funds within a year of the initial gift. They can do so with the company's online matching gift portal.
Soros offers donation matching to several nonprofit organizations, whether environmental, educational, or arts and culture-related.
3. State Street Corporation Donation Match
Match ratio: 1:1
Minimum match amount: $25
Maximum match amount: $40,000
Who's eligible: Full-time and part-time employees
State Street Foundation, the charitable arm of the second-oldest bank in the United States, offers a corporate matching gift program on behalf of the financial institution. The initiative matches employee donations and supports community fundraising efforts.
The Foundation matches donations to a variety of charities with exclusions, including political and religious organizations and active military causes.
State Street Foundation offers two matching gift programs for employees. GiveMore matches employee donations, while CollectMore matches their fulfilled fundraising pledges.
4. Johnson & Johnson’s Matching Gift Program
Match ratio: 2:1 and 1:1
Minimum match amount: $25
Maximum match amount: $20,000
Who's eligible: Full-time, part-time, and retired employees
Johnson & Johnson matches gifts for full-time, part-time, and retired employees, but the gift amount differs based on the employee status.
Submissions must be made 12 months after the initial donation to qualify for donation matching. Employees can request through the Johnson & Johnson matching gift portal.
5. Coca-Cola Company Gift Matching
Match ratio: 2:1
Minimum match amount: $25
Maximum match amount: $20,000
Who's eligible: Full-time and retired employees
Coca-Cola matches donations to arts and culture organizations, educational institutions, environmental nonprofits, and other charities.
Employees must make their gift requests by February 28, following the year the donation is made, using the designated matching gift page.
Final Words on Donation Matching
Donation matching is a powerful strategy for nonprofits to boost their fundraising revenue. By leveraging corporate matching gift programs and promoting them effectively to donors, organizations can significantly increase the impact of each contribution.
To maximize the benefits of donation matching, nonprofits should follow best practices, such as building a dedicated matching gifts page and highlighting matches in fundraising appeals. With the right strategies, donation matching can be a game-changer for nonprofits.
FAQs on Matching Gifts
Are matched donations tax deductible for the donor?
No, matched donations are not taxable for the donor. The donor can claim a tax deduction for their initial contribution, but the matched portion provided by the employer is not deductible for the donor. The company making the matched donation can claim a tax deduction for their contribution.
How does donation matching benefit a nonprofit's revenue?
Donation matching is an effective way for nonprofits to boost their revenue without additional fundraising efforts. By promoting matching gift programs to their donors, organizations can potentially double or even triple the impact of each contribution. Over time, these matched funds can significantly increase a nonprofit's overall revenue and support their mission.
Is a donation match legitimate?
Donation matches are legitimate, but it's essential to verify their authenticity before giving:
- Research the Company: Look for reviews and ratings from trusted sources like the Better Business Bureau or GuideStar.
- Verify the Match: Check the company's official website to see if the matching gift program is mentioned.
- Check for Details: Genuine corporate matching gifts will provide specific details such as the matching donor’s name, the match cap (maximum matched amount), and the time frame during which the match is valid.
How do you find companies that match donations?
To learn about companies that match donations, search online, and you will find a list of corporate matching gift programs. Don’t simply rely on them – take them as a base – and visit the official website of each company to find out about their matching program.
Which types of nonprofits are eligible for matching gifts?
Nonprofits which are eligible for corporate matching gift programs are as follows:
- Educational Institutions: Colleges, universities, K-12 schools, seminaries, school district foundations, or alumni funds.
- Health and Human Services: Community health centers, hospitals, health services, substance abuse programs, or other healthcare organizations
- Arts and Cultural Organizations: Museums, zoos, aquariums, orchestras, theaters, operas, or public broadcasting stations.
- Environmental Organizations: Wildlife preservation programs, conservation efforts, or public state or national parks
- Community Organizations: Homeless shelters, child welfare, public work programs, animal rescue, or low-income assistance initiatives.
