Matching Gifts 101

Matching Gifts 101

Corporate gift matching is the easiest way to increase your impact as a donor. 65% of Fortune 500 companies offer matching gift programs and over 26 million individuals nationwide are employed by companies with these programs (via DoubletheDonation). With these numbers in mind, it is somewhat disappointing that only 1.31% of individual contributions are matched at the average nonprofit.

Q: How do I find out if my company has a matching gift program?

A: Due to the nature of the public and nonprofit sectors, it is highly unlikely that organizations in those sectors will have a matching gift program. However, in the for-profit sector it is incredibly common. In a new job, during employee orientation, matching gift programs are typically covered along with additional benefits. If you are unsure if your company has a matching gift program, reach out to an HR representative, or someone working in Corporate Social Responsibility, Employee Engagement, Community Relation, or Social Impact.

Q: What do I need to know about my company’s matching gift program?

A: To ensure you are making the largest impact possible, you need to familiarize yourself with the structure and parameters of your company’s specific program:

• Match Ratio: This is the amount your company will give in relation to your gift, for example a 1:1 ratio means your company will match your amount exactly, while a 2:1 ratio means they will contribute double what you contributed.

• Maximums and Minimums: To ensure companies don’t overspend, they will set an individual maximum for each employee. Sometimes this is based on each individual gift and sometimes this is based on a single fiscal year. In order to stay efficient they also enforce minimum donations, typically this is around $25.

• Deadlines and Fiscal Year (FY): Most organizations will estimate a total amount they are willing to spend in each FY and calculate their maximums based on that number. With that comes the responsibility of the donor to file the necessary paperwork prior to a deadline. Some companies’ deadlines are monthly, and you must submit the matching gift form by the end of the month of the gift date, and some are more lenient.

• Other Restrictions: The first restriction that may apply is simply employee status. Sometimes these benefits are only available to full-time employees, but this varies by company. Additionally, companies may want to direct funds toward organizations with a similar cause as their own. Therefore, companies may have restrictions on what types of charitable organizations qualify for matching gifts. The best way to navigate this is to have the EIN of the organization and talk to your HR rep.

Q: Once I make a gift what do I have to do for my company to match it?

A: You, the donor, must submit the matching gift request. This request cannot be submitted by the recipient organization or the matching gift company. This request form will typically ask you for the gift date, the gift amount, and the organization EIN # among other things. Always keep the receipt an organization sends you after your donation has been received. Sometimes this is an automated email, and sometimes this can be a mailed letter depending on the type of gift and the organization. We recommend keeping a blank form saved on your desktop or in a cloud-based drive homepage, or anywhere else that will be easy to access for you. Finally, when the recipient organization receives the matching gift, they should notify both you and your company.

Q: Where does the matching gift money go?

A: Typically, if you have designated your gift to a specific area, the recipient organization will designate the matching gift to the same area. In reality, they will view the two gifts together as one when it comes to where they are designated. This isn’t always the case though and depending on the size of your gift you could ask a representative of the organization where the money was designated.

Q: Is there anything else I can do through my company?

A: Yes, most large for-profit companies have adopted some type of corporate social responsibility strategy and they will have a budget to direct in any way they decide. There are usually cross-department committees (almost like a board) who have a say in the designation of those funds. Don’t be shy about showing interest in joining those groups, believe it or not, it can be difficult for companies to find more people interested in that type of involvement. 

Additionally, if you have an organization you are interested in, or have been involved with, it never hurts to ask… Some companies have funds restricted for specific employee requests separate from matching gifts. You may need to file paperwork that is more thorough than the blanket matching gift form, but in many cases, the money is there and waiting to be spent.