Matching gifts are the best kept secrets in corporate philanthropy. And that’s a shame.
Sixty-five percent of Fortune 500 companies, plus many others, grant matching donations to those made by employees to their favorite nonprofits. Companies determine how much to match for employee donations based on a preset ratio, with the majority of companies matching donations at a 1:1 ratio. This transforms a $100 donation into $200.
Matching gifts are free money to nonprofits that dramatically stretch the generosity of employees, a win for everyone involved. With this one benefit, nonprofits instantly magnify their fundraising, employees experience a company perk on behalf of the causes they’re passionate about, and companies inspire more employees to engage with their corporate giving programs.
So why is the median employee participation rate for matching gift programs 9%? How is it possible that a staggering $6-$10 billion in matching gift funds goes unclaimed per year?
Double the Donation, the leading provider of employee matching gift and volunteer grant tools for nonprofits, is dedicated to changing these numbers and putting more matched donations in the hands of nonprofits that are entitled to these funds. As the season for corporate holiday giving campaigns enters full swing, Causecast has partnered with Double the Donation to create The Ultimate Guide to Matching Gifts, a resource to help employees and nonprofits maximize the matching gift revenue that’s waiting to be claimed.
Donors are rarely aware of whether or not their employer, or their spouse’s employer, offers a matching gift program. Beyond that, there are no universal guidelines for matching gifts, so it’s usually up to employees to seek out the fine print for this corporate giving benefit.
Double the Donations offers tools and support to help nonprofits claim matched funds by making it easy for employees to navigate their own corporate regulations around matching gifts. As they see it, if a nonprofit’s donors are already passionate enough to open up their wallets, then they should be happy to invest in a simple, short process to double their donations.
This is certainly true, but why aren’t companies doing a better job of publicizing this fantastic benefit? Matching gifts gives every stakeholder a boost of some kind, and it serves as a compelling hook to get employees excited not only about their corporate giving programs, but about their work as a whole. Matching gifts lets employees know that their efforts are an important part of the company’s overall corporate philanthropy. When employees feel supported by their companies around the causes that matter most to them, they feel a greater sense of identity, purpose and meaning through their work.
Internal promotion is one of the strongest triggers for claiming matching donations, and companies should want the high engagement and great PR that comes from having a matching gifts program that is actively used. For example, these companies are some of the matching gifts standouts that Double the Donation has identified, with best practices that every company can learn from:
BP British Petroleum - BP offers practically every type of employee giving program and allows the general public to track which organizations are receiving donations online in real time. The company provides a standard 1:1 match on all donations made by employees. The company also offers a 100% match on all money raised by employees for charity runs, walks, etc.
SOROS Fund Management - SOROS Fund Management offers the most generous limits on corporate matching gift programs. The company’s 3:1 match for employees and 2:1 match for partners is a strong incentive for employees to give back to their communities. The company matches up to $300K in annual donations per employee. This dollar amount is by far the highest limit for any corporation.
General Electric - In 1954, the GE Foundation created the Corporate Alumni Program, which was the first corporate gift-matching program. Today, the GE Foundation matches over $42 million annually to most 501(c)(3) organizations and accredited educational institutions (including K-12 schools). GE created the model for corporate employee matching gift programs.
The Gap Corporation - The Gap Corporation, which includes Banana Republic, Old Navy, Piperlime, Athleta, and Intermix, offers a matching gift program as well as multiple types of volunteer grants. Gap employees can request matches on donations made to almost all types of nonprofits. Match limits range from $1,000 annually for part-time employees to as much as $10,000 for Senior VPs and above. Gap offers one of the most comprehensive and easy to use online systems to submit match requests.
CarMax - CarMax matches donations to nearly every nonprofit. In addition to their 1:1 match on all donations, the company also offers a generous volunteer grant program. CarMax matches donations made by an employee’s dependents until they turn 26.
Boeing - Boeing matches employee and retiree donations to most nonprofits. The company provides a dollar for dollar match on the first $6,000 donated per employee and a 50% match on donations from retirees.Boeing provides a $100 grant to a nonprofit every time an employee participates in a run / walk / bike type of event.
Johnson & Johnson - Johnson and Johnson matches donations to nearly every nonprofit. Each of the company’s 120,000 employees, plus retirees, are eligible to request up to $10,000 in personal contributions to be matched each year. A 2:1 matching ratio for current employees and a 1:1 rate for all retirees.
This holiday season, don’t make your matching gifts program such a secret. Shine a light on this perk your company is offering and encourage employees to make the most of your generosity. The goodwill you spread with your employees and community through this significant perk extends far beyond the dollar amount of your match.
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