Often overlooked as a form of corporate philanthropy, matching gifts are an arrangement through which an eligible employee’s gift to an eligible institution is matched in cash by a gift from the employer. It’s likely that your organization already has many qualifying donors, and that more individuals would support your cause if they knew that their gift would trigger a corporate match. Are you taking full advantage of this fact?
Although colleges and universities have long received the bulk of matching gift dollars, companies have expanded their eligibility guidelines to have broader appeal.
According to the U.S.-based Council for the Advancement and Support of Education (CASE) which operates the National Clearinghouse for Corporate Matching Gift Information, the organizations most frequently eligible are art museums, performing arts groups,historical societies, zoos and botanical gardens, libraries, arts groups, public television and radio, hospitals, health organizations, social service organizations, environmental/conservation groups, civic organizations and the United Way. Recently, new gift types have become eligible, such as capital gifts, property gifts, insurance premiums, deferred gifts and even volunteer hours.
One of the most effective programs you can run
According to the Institute of Donations and Public Affairs Research (IDPAR), almost half of the respondents to the recent Corporate Community Investment in Canada survey indicated that they had a matching gift program. The most common matching ratio in all areas is 1:1, although some companies did report a 2:1 ratio for post-secondary education and arts and culture organizations. Match caps do vary among institutions, programs and services, with the most frequent caps in the neighbourhood of $500 to $1,000.
As companies establish their own program guidelines and employees initiate matched gifts, organizations require a commitment of time, effort and initiative. Since it’s not hard to promote the program and convince individuals to contribute eligible gifts, matching gift programs are one of the most cost-effective projects you can run. Following regular annual donations with little additional effort, you need not solicit corporations directly, and your organization does not have to compete with other institutions for corporate attention.
An easy way to bring attention to your cause and foster familiarity with corporations and foundations, matching gift programs often set the stage for enhanced relationships — sometimes even positioning the organization for other types of financial assistance in the future. These are just some of the many reasons your organization should take advantage of a program. It may be the easiest money you raise.
Companies receive real benefits, too
The charities aren’t the only ones that gain. Companies also receive benefits. Corporate relations and communications, perceptions, and overall image improve. Employees appreciate corporate support of their community involvement, and the public sees management and employees as working hand in hand for the common good. Matching gift programs also provide low-cost publicity and are flexible enough to meet a variety of objectives and corporate budgets.
Whether stimulating first-time gifts, offering a “challenge” incentive for large donations, or using a program to renew lapsed donors, matched gifts can be used in a number of easy and effective ways. For more information on how to start, expand, or administer a matching gift program, or to order one of eight exceptional publications on the topic, call CASE at (202)328-6978.
