Matching Gifts 101

How nonprofits can amplify their fundraising efforts with matching gifts.

What Are Matching Gifts?

Matching gifts are giving programs set up by companies, foundations, and individual funders to encourage philanthropic donations to nonprofit organizations. Matching gifts can have a huge impact on a nonprofit organization’s fundraising revenue. For instance, some corporate matching gifts can double (or even triple) a donor’s contribution.

Why Nonprofits Use Matching Gifts for Fundraising

Nonprofits use matching gifts for several compelling reasons:

• Amplifying Donations: Matching gifts effectively doubles (or more) the impact of individual donations. This means that a donor’s contribution can go twice as far in supporting the nonprofit’s mission without the donor having to give more out of pocket.
• Encouraging Donations: Knowing that their donation will be matched can motivate donors to give. It adds an extra incentive, as donors feel their contribution will have a greater impact.
• Engaging Donors: Matching gifts provide an excellent opportunity to engage with donors. Informing them about matching gift opportunities can enhance their sense of involvement and commitment to the cause.
• Raising Awareness: Many donors are unaware that their employers offer matching gift programs. By promoting these programs, nonprofits can educate their donor base and potentially unlock additional funds.
• Building Relationships with Corporations: Matching gift programs can help nonprofits build stronger relationships with corporations. These relationships can lead to additional support, such as sponsorships, volunteer programs, and other forms of corporate giving.
• Creating a Sense of Urgency: Special matching gift campaigns or challenges can create a sense of urgency, encouraging donors to give within a specific timeframe to maximize their impact.

Types of Matching Gift Offers

Matching gift come in various forms, each designed to maximize the impact of donations to nonprofits. Here are some of the different types of matching gifts:

1. Corporate Employee Matching Gifts: The most common type, where companies match donations made by their employees to eligible nonprofits. These matches are typically on a 1:1 ratio but can go as high as 4:1.
     • Example: Microsoft matches employee donations to most nonprofits at a 1:1 ratio, doubling the impact of each gift.
2. Volunteer Grants: Some companies offer grants to nonprofits where their employees volunteer. These grants are based on the number of hours volunteered.
     • Example: Google provides grants to nonprofits where employees volunteer, offering $10 per hour volunteered, up to $10,000 per employee per year.
3. Fundraising Event Matches: Companies may match funds raised during specific events, such as charity runs or galas. This encourages higher participation and donations during these events.
     • Example: Apple matches funds raised during their annual charity run, doubling the total amount raised by participants.
4. Special Campaign Matches: During special campaigns or giving days, nonprofits might offer to match donations made within a specific timeframe, adding urgency and excitement to the fundraising efforts.
     • Example: A local food bank offers a special match during their annual giving campaign, matching donations at a 2:1 ratio for a limited time.
5. Matching Gift Challenges for Major Donors: Some organizations set up matching gift challenges where major donors agree to match donations made by others up to a certain amount. This can motivate more donors to contribute, knowing their donations will be matched
     • Example: A major donor pledges to match all donations up to $50,000 during a specific campaign period.
6. Board Member Matching Gifts: Nonprofit board members may offer to match donations made by other donors, demonstrating their commitment to the organization and encouraging others to give.
     • Example: A board member matches all donations made during a fundraising drive, up to $25,000.

Conclusion

Matching gifts are an underutilized resource that can significantly enhance a nonprofit’s fundraising capabilities. According to Double the Donation, an estimated $4 – $7 billion in corporate matching gift funds goes unclaimed every year.

Another reason nonprofits should pursue matching gifts to maximize their revenue is that research has shown that donors prefer matching gifts and tend to give larger gifts when they know their gift will be matched: 1 in 3 donors indicate they’d give a larger gift if a match is applied to their donation.

By understanding the basics, promoting awareness, and leveraging different types of matching gifts, nonprofits can unlock substantial additional funding to support their missions.

Do you have specific questions about matching gifts or need help incorporating a match in your next fundraising endeavor? Connect with one of our experts.