Matching Gifts 101: the Basics

Matching Gifts 101: the Basics

Matching gifts are an aspect of corporate giving that doubles an employee’s initial donation to an eligible nonprofit organization. Matching gift programs are set up by companies and corporations as an employee benefit. After an employee donates to a nonprofit, they can submit a matching gift request to their employer and the company will make an additional donation to that nonprofit. So the more you give the more your company gives.

The first matching gift program began in 1954. The GE Foundation created the Corporate Alumni Program that matched employee donations to schools and universities. Ever since then, matching gifts has only gotten bigger. Now 65% of Fortune 500 companies and many smaller companies have began to offer these programs, they represent an important source of funding for nonprofits. 

However, it has been reported by America's Charities Corporate Benchmarking Analysis that the Average employee participation in employer matching gift programs is only 10%. This signifies an incredible opportunity for growth. And as most things do, it begins with raising awareness. Many feel that their gift size is inadequate however, when matched a small contribution can instantly turn into a sizable gift. The process is so simple on the donors' end that the main reason for an unmatched gift is mainly ignorance.

Ratios  

The match ratio is the amount of money that an employer will contribute to the organization you made a donation towards. A 1:1 ratio is one of the most common ratios, which is a 100% match to your donation, meaning that your gift would literally be doubled. A few companies that match 1:1 are General Electric, Disney, and Boeing. Match ratios can range anywhere from .5:1 to 3:1. Although, a ratio of 2:1 or 1:1 is most common.

Minimums and Maximums

Almost all corporations will set minimum and maximum gift requirements that they will match. You can make a gift outside of the restrictions but in that case the company will not match it. The Coca-Cola Company has a minimum requirement of $25.00 and a maximum $20,000.00 with a gift ratio of 2:1. Depending on the company, you 


Those are some basics about Matching Gifts, it can be quite a lot of information to share with your donors, however the more we familiarize our donors and nonprofit employees the quicker you will see those donations increase. Let's move! 

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