OBTAINING MATCHING GIFTS
Matching gifts are a powerful way nonprofits can improve their fundraising performance.
When they are offered within a limited timeframe—e.g., November 1st through December 31st—they motivate small gift donors to act quickly to increase the value of their gift. Matching gifts with a deadline also help meet short-term income goals as well as furthering long-term goals, such as donor retention and upgrading.
While most matching gifts are offered on a dollar-for-dollar basis, a different ratio, such as two-to-one or three-to-one, can be effective in attracting new donors or driving upgrades from existing donors.
Setting the Right Matching Gift Amount
A fundraising appeal with a matching gift will almost always outperform an appeal without one. To be most effective, the amount of the matching gift should be proportional and realistic in the eyes of donors.
For example, a $10,000 matching gift may not be seen as motivating to donors who support a large global relief organization, while a $1 million matching gift may seem unachievable to donors of a small community organization.
Testing different matching gift amounts is the best way to establish the most effective range for a specific organization.
Types of Matching Gifts
- Corporate Matching Gifts: Many companies have programs where they match their employees’ charitable contributions. Although this type of matching gift lacks the motivating benefit of an imminent deadline, nonprofits should always provide donors with the information and tools to help them easily access these ongoing opportunities.
- Foundation Matching Gifts: Some foundations offer matching gift programs as part of their philanthropic efforts. A matching gift can be introduced as part of a grant agreement whereby the foundation agrees to be publicly named as the matching partner and a certain percentage of the program goal—such as one-quarter to one-third—will be funded by individual donors. These types of agreements are effective for creating higher ratio matches, such as three-to-one.
- Individual Donor Matching Gifts: Wealthy individuals and major donors may be willing to match donations during specific campaigns or fundraising events, such as Giving Tuesday, calendar year-end, or a capital campaign.
For major donors who give less than $25,000, IDM recommends asking if their gift can be pooled and used anonymously alongside other gifts to increase the total value of a matching gift. For example, four gifts of $25,000 can be presented to direct response donors as a $100,000 matching gift. By keeping donors’ information anonymous, these gifts offer more flexibility in use and timing and may be easier to obtain than one very large gift.
How to Obtain Matching Gifts
- Train Staff: All staff, including executives, and board members who solicit gifts should be trained in how to solicit matching gifts. Persuasion materials, such as prior results and testimonials, should be developed to assist staff in marketing matching gift opportunities.
- Research Potential Donors and Foundations: Thoroughly research potential donors and foundations that offer matching gift programs. Resources such as donor databases, industry reports, and networking events can be valuable tools in this research process.
- Incorporate Matching Gift Requests into Proposals: Include matching gift requests as part of proposals to foundations and major donors. Messaging must be compelling and clearly outline how the matching gift will be utilized as well as the anticipated impact in terms of income and programmatic objectives.
- Leverage Existing Relationships: Donors who have previously contributed to the organization may be more inclined to consider a matching gift. Be proactive in asking them to allow their contribution to be used as a matching gift. Donors are often interested in leveraging their gifts for greater impact but may not be aware of matching gift opportunities.
Express Gratitude
Thanking donors who provide matching gifts is essential for building long-term relationships. Be proactive in sharing results and using them as a stewardship building opportunity to keep donors interested in matching gifts active for the long-term.
If you are interested in learning more about how matching gifts can help your organization, please contact IDM today!