Matching donations
Encyclopedia
A matching gift, also known as a matching fund or matching donation is a charitable
gift made toward a non-profit organization
by a matching donor (e.g., an employer) under the provision that an original donor (e.g., an employee) first makes a gift toward that organization.
which matches gifts decides to make a gift to his or her charity
of choice. Since this bank is a matching gift corporation, it will match the donor's $100 gift to the charity at a 1:1 ratio, for a total of $200. In this manner, this donor increases the value of his or her gift simply by participating in the matching program, and will be recognized at that giving level by the charity.
In order to procure the matching funds, this employee would submit a form to his or her employer's human resources department.
Some matching gift corporations offer matching gift programs to the spouse
s of their company employees and retiree
s from their companies.
In lieu of a formal matching gift program, some well-known corporations such as Apple provide other charitable support, such as donated computers, to their non-profit organizations of choice.
Some companies also match gifts for employees’ volunteer work. In these cases, companies will donate either X dollars per hour of volunteering that an employee did on their own time or Y dollars after say 50 hours. This can be a major source of fundraising for a non-profit.
Non-profit organizations sometimes receive "challenge matches," wherein a given donor, rather than giving a large gift outright, offers to give the organization a large donation with the stipulation that only as much as is raised from other donors within a certain span of time will be actually given to that organization.
A matching gift, typically a one-time charitable gift made by an employee and matched by the employer, should not be confused with an employer matching program
, which has to do with the employee's 401(k)
plan and retirement
.
Charitable organization
A charitable organization is a type of non-profit organization . It differs from other types of NPOs in that it centers on philanthropic goals A charitable organization is a type of non-profit organization (NPO). It differs from other types of NPOs in that it centers on philanthropic goals A...
gift made toward a non-profit organization
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
by a matching donor (e.g., an employer) under the provision that an original donor (e.g., an employee) first makes a gift toward that organization.
Typical procedure
As an example scenario, an employee of a bankBank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
which matches gifts decides to make a gift to his or her charity
Charitable organization
A charitable organization is a type of non-profit organization . It differs from other types of NPOs in that it centers on philanthropic goals A charitable organization is a type of non-profit organization (NPO). It differs from other types of NPOs in that it centers on philanthropic goals A...
of choice. Since this bank is a matching gift corporation, it will match the donor's $100 gift to the charity at a 1:1 ratio, for a total of $200. In this manner, this donor increases the value of his or her gift simply by participating in the matching program, and will be recognized at that giving level by the charity.
In order to procure the matching funds, this employee would submit a form to his or her employer's human resources department.
Less common matching gift situations
Usually, matching gifts are equal to the amount given by the original donor, i.e. a 1:1 ratio. For example, if a donor makes a gift of $100 to an organization, the matching company will also give $100, making the total gift worth $200. While 1:1 matches are the most common, matching gifts can be of a variety of ratios, including 0.5:1 (the matching company giving $50 for every $100 given by the donor) and 3:1 (the matching company giving $300 for every $100 given by the donor).Some matching gift corporations offer matching gift programs to the spouse
Spouse
The term spouse generally refers to a partner in a marriage:* Husband, referring to a male partner* Wife, referring to a female partner* In some usages, a partner in a civil union, domestic partnership or common-law marriage- See also :* Bride...
s of their company employees and retiree
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to...
s from their companies.
In lieu of a formal matching gift program, some well-known corporations such as Apple provide other charitable support, such as donated computers, to their non-profit organizations of choice.
Some companies also match gifts for employees’ volunteer work. In these cases, companies will donate either X dollars per hour of volunteering that an employee did on their own time or Y dollars after say 50 hours. This can be a major source of fundraising for a non-profit.
Non-profit organizations sometimes receive "challenge matches," wherein a given donor, rather than giving a large gift outright, offers to give the organization a large donation with the stipulation that only as much as is raised from other donors within a certain span of time will be actually given to that organization.
Results
Non-profit organizations encourage more giving and generally raise more funds when matching gifts are offered to prospective donors, due to the increased incentive associated with the match. It can be a challenge for non-profits to identify which companies offer matching gift programs, but effectively managing those interactions between donors and employers can materially impact a non-profit's fundraising results.A matching gift, typically a one-time charitable gift made by an employee and matched by the employer, should not be confused with an employer matching program
Employer Matching Program
The Employer Matching Program is an employer’s potential payment to an employee’s 401 plan dependent on the extent of an employee’s participation in the plan.-Definition:...
, which has to do with the employee's 401(k)
401(k)
A 401 is a type of retirement savings account in the United States, which takes its name from subsection of the Internal Revenue Code . A contributor can begin to withdraw funds after reaching the age of 59 1/2 years...
plan and retirement
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to...
.