MatchingGifts

MatchingGifts refers to charitable giving programs in which a donor's gift to a nonprofit is augmented by a second party, most commonly the donor's employer. The best-known form is a corporate matching gift, where the company contributes an amount equal to the donor's gift, up to an annual limit. Some programs extend to matching gifts for volunteers or donors beyond employees.

How they work: A donor makes a contribution to a qualified nonprofit. The donor submits a request to the employer's program, providing details such as the nonprofit's name, donation date, and amount. The employer or program administrator verifies eligibility and processes the match, usually within weeks, and the funds go to the nonprofit.

Scope and variations: Many employers participate, particularly larger corporations; programs are also available through foundations and universities. Typical matching ratios range from 1:1 to 2:1, with caps that vary by company. Some programs have minimum donation thresholds. In addition, volunteer grant programs donate money to nonprofits in recognition of the hours employees volunteer.

Impact and considerations: Matching gifts can significantly increase charitable impact, helping nonprofits with planning and revenue stability. They can also encourage philanthropy among employees and community members. Limitations include complex eligibility rules, reporting requirements, and occasional restrictions on certain types of nonprofits or political activities.

Administration and data: Companies track matches for reporting and compliance, and nonprofits may need to submit receipts or IRS documentation. Systems range from simple paper forms to online portals, and third-party services exist to help donors locate matching gift opportunities.