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A matching gift is a type of charitable contribution where an employer matches the donations made by their employees to eligible nonprofit organizations, amplifying the impact of the employee’s gift. These programs encourage charitable giving by effectively doubling or sometimes tripling the contributions made by individual employees. When an employee makes a donation, they can request their employer to match that contribution, which usually involves submitting a form along with proof of the donation. This process not only benefits the nonprofit by increasing the total funds raised but also enhances employee engagement and satisfaction, as employees feel their contributions are valued. Many major corporations participate in matching gift programs, making them a valuable resource for nonprofits to leverage for increased fundraising efforts.
In reality, matching gifts require active participation from the donor. Employees must initiate the process by submitting a request to their employer, and not all donations are automatically matched. It’s essential for donors to understand their employer's specific policies regarding matching gifts to ensure their contributions are amplified.
Most nonprofit organizations that are registered as 501(c)(3) tax-exempt entities in the United States or registered charities in Canada are eligible to receive matching gifts. However, eligibility can vary by employer, and some companies may have restrictions on the types of organizations they will match (e.g., religious organizations, political advocacy groups).
Nonprofits can promote matching gifts by informing donors about the possibility of their contributions being matched through newsletters, social media, and targeted email campaigns. They can also provide clear instructions and resources for donors to check their eligibility with their employers and complete the matching process easily.
Typically, the employee must make a donation to the nonprofit and then reach out to their employer's HR or corporate giving department to request a match. This often involves filling out a matching gift request form and providing a copy of the donation receipt. Each company may have a specific process, so employees should check their employer's guidelines.