Did you know that over 26 million Americans work for companies that will match their charitable donations? According to software company Double the Donation, this includes at least 65% of Fortune 500 companies, with the vast majority (91%) matching donations at a 1:1 ratio. It's a huge opportunity for nonprofits to meet—and even exceed—their fundraising goals.
Unsurprisingly, employees are more likely to donate, and give larger amounts, when they know their employer will match their contribution. But with an estimated $4 to $7 billion in matching gift funds going unclaimed each year, it's clear that many nonprofits aren't fully tapping into this revenue stream.
So, how can your organization encourage and collect these valuable matching gifts? It’s about being proactive, not just hoping the donations will roll in.
Most corporate matching programs are managed by HR departments. They provide employees with the necessary forms, and once completed, the employer sends the matched donation directly to the chosen charity. While a dollar-for-dollar match is standard, some companies are more generous, and others less. It's also worth noting that while many employers will match donations to any nonprofit, some have restrictions.
Here’s how to get ahead of the game:
Keeping track of everything manually can be a challenge. Thankfully, automated solutions now exist to help nonprofits identify donations eligible for a match. Donors can also use these tools to quickly find out if their employer participates. After your nonprofit receives a donation, this specialized software can even handle submitting the necessary paperwork to the company, streamlining the entire process for you.
If, despite your best efforts, matching gifts are only trickling in, why not create your own matching pool? This is a fantastic way to generate excitement and urgency.
Ask your board members and major donors to match contributions during a specific, limited time period. You could also target certain donor populations or set a minimum donation amount. For example:
Don't forget to explore foundations as well. Some charitable foundations will match gifts to help jump-start a new fundraising effort or a major campaign. Setting up this kind of arrangement could be simpler than securing a partnership with a large corporate employer.
With billions of dollars in matching gifts going unclaimed every year, it’s time to take action. Educate your donors and corporate givers about the power of their contributions when doubled. Be persistent in your follow-up—if you don’t receive an expected matching donation, send a friendly reminder.
Boosting your nonprofit's revenue doesn't have to be complicated. By making a few strategic adjustments, you can unlock a significant source of funding and get closer to achieving your mission.
Need more ideas on how to boost your nonprofit's revenue? At SD Mayer & Associates, we're more than just accountants—we're your partners in success. Contact us today for customized solutions to help your organization thrive.