Employee Matching Gift Programs a No-Brainer for Nonprofits
Do Not Miss Out!
Each year, corporations donate billions to nonprofits in the United States, with $2-$3 billion of that coming from matching gift programs for their employees. Yet, $6-$10 billion in matching gifts goes unclaimed yearly Plus, 65 percent of Fortune 500 companies offer matching gift programs, but the median employee participation rate is only nine percent.
All of those figures seem surprising, but they are true. While corporations are pretty darn generous in matching their employees' donations, still so much money remains on the table.
Why is that? Probably, because companies need to promote their matching gift programs better to employees, but also charities must become more sophisticated about urging their donors to investigate whether their donations can be matched by their companies.
In this article, we'll tackle the second of those causes: how charities can do better.
What are Employee Matching Gift Programs?
Matching gift programs give employees a voice about where their employer spends its corporate giving dollars.
Most firms match employee charitable contributions at a 1:1 ratio, with some giving triple or quadruple donations.
Employees love matching programs. Moreover, for those nonprofits that market this option to donors, it is an easy way to boost their annual fundraising.
Promoting matching gifts encourages this vastly underused form of giving, and helps retain donors.
There is no shortage of companies with matching gift programs so make sure your organization does everything possible to get your share of that money.
How do Matching Gift Programs Work?
Donors can easily use matching gifts from their employers if they know about the program and if they know how to use it.
While matching gift forms may vary by company, the process for donors and nonprofits is very similar.
Donors go through three steps to submit matching gifts:
- Make a donation to a nonprofit.
- Determine if their employer or their spouse’s employer offers a matching gift program.
- Locate and submit the appropriate matching gift form.
Nonprofits should take these three steps:
- Communicate matching gift information to donors.
- Receive the matching gift form which a donor fills out using a paper form or electronically.
- Verify that the individual made the donation and submitted the form to the company.
How Nonprofits Can Benefit
Matching gifts are free money. Because so many donors work at companies with these programs, your nonprofit is probably already eligible for matching contributions.
Matching gift donations from companies have very few strings. If anything, they may require the funds go into your organization’s general fund, but that should not be a problem.
With unrestricted money this easily available, it does not make sense to ignore matching gifts from companies and donors.
Companies That Match
Many nonprofits are not aware of the range of businesses that give generous matching gifts for their employees. Here are just a few.
How to Promote Employee Matching Gifts to Your Donors
A matching gift program is useless unless nonprofits promote them to their donors.
Many people are not aware that their companies offer these programs, or they simply don’t think of them when making a donation. For some, it may seem like too much trouble.
That is why charities need to improve their marketing and not just expect companies to promote matching gifts to their employees.
Here are five strategies your nonprofit should use to increase fundraising from matching gift programs.
1. Change Your Donation Pages
For most nonprofits, making an online donation involves going through three screens:
- Ways to give pages
- Donation processing pages
- Confirmation page
Is your organization prompting a donor to submit a matching gift on one or all of these locations? If not, you are missing the boat.
Online donors have already taken the time to donate, so while they are on your website, remind them about matching gifts.
2. Use Social Media
Have you ever wondered what makes for a strong social media post? Often it can be boiled down to shareability.
If you post something valuable, that message will be re-tweeted, shared, and reposted so that many more people outside of your immediate audience see it.
While posts on matching gifts may not be as breathtaking as an image showing off all the great work your nonprofit does, there's still hope. Show what that additional funding could have.
A good example of a social media message is this one from the National Kidney Foundation:
Did you know?
Many companies support causes that are important to their employees by matching their charitable contributions. Here's how to find out if you can match your gift: https://www.kidney.org/matchinggifts
The key is to draw attention and show the impact that employee giving programs can have on your mission.
Social media can reach digitally savvy donors who might never visit your website or read your newsletter. Moreover, social media is an easy and cheap way to speak to donors. So schedule monthly matching gift posts today.
3. Use Your Content
Does your nonprofit send out a weekly or monthly email newsletter? Do you send out a quarterly paper newsletter?
What about an online blog? If you do, you've probably wondered, What do we write about?
If you produce content in any form, you are in great shape to write an article on matching gifts.
Regardless of where your content goes, make sure your story:
- Provides an overview of matching gifts
- Shares examples of a few companies that have previously matched for your organization
- Explains the positive result (how much did you raise last year?)
- Encourages submission of match forms
You've already spent time and energy capturing donor email and mailing addresses. Use them to showcase matching gifts.
4. Give Donors Company-Specific Information
The most significant barriers for donors is ignorance about the submission process.
While asking donors to "check with HR to see if your company will match your donation" is a good place to start, giving donors company specific guidelines and forms can make a huge difference.
If your donors live in a single city, compile information on the five largest matching gift companies in the area. If your donors live in a large city or the entire country, consider subscribing to a matching gift database service.
Giving donors the information they need to submit match requests can create more matching gift revenue.
5. Thank Donors Who Do Get Matches
Have you reviewed the process for thanking donors? We regularly hear that nonprofits only send a matching gift acknowledgment to the company.
You should thank both the company and the employee. Not only do donors love being praised, but they are more likely to donate again and ask their employer to make another matching gift.
The bottom line is that matching gift programs can add tremendously to your fundraising.
Check out your marketing strategy for matching gifts and how you help donors submit them. The payoff will make the effort ever so worthwhile.
An expert on corporate giving programs, Adam Weinger is President of Double the Donation, a service that helps nonprofits maximize their fundraising from corporate giving programs.