5 Easy To Follow Steps In Setting Up A Matching Program
There are several different avenues that nonprofits use to secure the necessary funds to accomplish their worthy cause. They might choose to Empower Supporters with Peer-to-Peer Fundraising. Additionally, Crowdfunding is very a effective way in which nonprofits fund a campaign.
Some campaigns might be seasonal or even annual. The Baby Bottle Campaign Season for pro-life ministries and Giving Tuesday for after Thanksgiving are both successful yearly avenues used by nonprofits.
Differentiated fundraising is essential for different donor sources of revenue, especially at significant times of the year.
There is another effective method, and it can be utilized throughout the year, no matter the season; that is a matching program.
Businesses Matching Programs Can Benefit Your Nonprofit
Let’s consider the company’s standpoint as they consider your nonprofit’s matching program. It would be a powerful way for their business and their employees to coordinate their philanthropic efforts and maximize their impact on causes that matter to them.
These employee matching programs are a corporate giving program in which the company will match the donations their employees make to an eligible nonprofit organization. One of the beauties of a matching program is that it is not a seasonal or limited-time program, but available every day of the year, year after year.
“Having a business that partners with your nonprofit is valuable because your cause will be receiving two donations for the work of soliciting one.”
A company's matching program, seen as an employee benefit, not only engages the employee but increases the impact of their donation and establishes a shared value and purpose for both the company and employee.
For the company, it is an easy and structured way to support the good work in their community and build a relationship with charities. Corporate social responsibility is a very important factor in how the public, and communities in particular, perceive a company. This factor makes a matching program an essential asset to the company.
Most nonprofits have business partners who believe in their cause, but maybe have not thought about setting up a matching program. If your nonprofit has such business partners, it should be foremost to ask them about setting up a matching program.
Having a business that partners with your nonprofit is valuable because your cause will be receiving two donations for the work of soliciting one. Donors also appreciate knowing that their gift went twice as far and many find it as an incentive to donate.
It is relatively easy for a business to set up a matching program. It is as much to their advantage as it is to your nonprofit. These steps will help to guide a nonprofit’s business partner in setting up this worthwhile program.
5 Easy Steps to Set Up a Company’s Matching Program
Step 1: Have Clear Objectives For The Matching Program
Establish the reason that the company is running a matching gifts program. Your company should be able to present a clear and impactful reason that the matching gift program is a benefit to the employee and the community.
Awareness is key to collecting matching gifts, so your company should promote the nonprofit organization and let employees know that their donations will be matched.
After having made a donation, the employee's request for a matching gift from your company is a short process that is initiated by the donor employee. Make sure that you include this information on your company website with links to this easy process. A donation page on your company website is a great way to do this. You can include information about your nonprofit, why your mission reflects the values of the company, and the matching gift program process.
Step 2: Matching Gift Ratio
Decide what the matching gift ratio will be that the company could offer. The majority of companies match employee donations at a 1:1 ratio. There are some whose ratio is as high as 4:1. A company will also need to decide if the match will extend to part-time and retired employees.
Step 3: Choose Minimum And Maximum Amounts
It would be nice if all companies could afford, like Microsoft, to set their minimum at $1 and their match maximum at $15,000 per employee per year. Microsoft also allows volunteer time to be eligible for a matching gift of $25 per hour. When deciding, choose the minimum and maximum that make sense for the company and consider matching volunteer hours, too.
Step 4: Establish Submission Deadlines And Nonprofit Eligibility
The standard submission deadline for matching gift requests from employees is the end of the calendar year. Other companies may ask that the request be submitted within 3 months of the donation.
Some companies will put in place restrictions regarding which nonprofits are eligible for their company’s matching program. You will want to choose companies that align with your nonprofit’s values.
Step 5: Create A Matching Program That Will Evolve Over Time
While the core values of a company will probably not change over time, the way the company and its employees express those values may change. Over time, the needs of the community will change. Today's employees may also be impacted in ways that were not on anyone’s radar twenty years ago, and that will influence the causes that they choose to support.
Today’s nonprofits have their fingers on the pulse of a community's needs and work hard to address them. As those community’s needs change, technology drives the company to design a highly-automated matching program, reflecting your nonprofit’s values and keeping in tune with the community and employees.
Final Thoughts
Businesses’ matching programs are a powerful revenue and engagement opportunity for nonprofits. For the business, it is an easy and structured way for the company to strengthen its ties and philanthropy outreach in the community. This is a win-win for all concerned.
Nonprofits should take the time to see if their business partners have matching programs, and if not, ask if they would be willing to set up a program for their employees. If your nonprofit is also able to outline the 5 easy steps to follow, it will help to encourage your business partners to set up a matching program that increases their impact on your cause.
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Crystal Hoag
This article was inspired by our customers and written to encourage your fundraising efforts. Although we work with nonprofits and events daily, our team members are not Event Consultants. We encourage you to consult with your event consultant, executive team, and/or affiliate organization before making any major changes to your events.
