The Ultimate Guide To Donation Matching: How A Gift Match Could Make A Difference

Nonprofits are important to our society, providing vital services to those in need. Despite their good intentions, however, many nonprofits find themselves cash-strapped and unable to carry out their mission. In recent years, the concept of donation matching has emerged as a way to plug this financial gap and help nonprofits reach their goals. Donation matching is a process by which private donors or companies match the donations given to nonprofits by individual donors. This can be done in a variety of ways, such as dollar-for-dollar matching or providing a percentage of the total donation amount.

Donation matching helps to amplify the impact of donations and encourages individuals to give more. By incentivizing donors, nonprofits can gain access to additional funds that can be used for their important work. For companies, donation matching is an effective way to demonstrate their commitment to social responsibility, allowing them to use  Employee Matching Programs to make a real difference to the world, promoting a positive public image while helping those in need. 

Donation matching also offers the potential for larger donations from individuals: if a donor knows that their donation will be matched by a corporation, they may be more likely to give larger amounts. This can help nonprofits acquire larger donations than would otherwise be possible.

Finally, donation matching is an effective way to engage new donors. By knowing that their donations will be matched, potential donors may be more likely to give. This can help nonprofits reach wider audiences and raise more funds for their cause.

Donation matching is a powerful tool for nonprofits and corporations alike. It can help amplify the impact of donations, engage new donors, and encourage larger donations from individuals. However, it is important to consider the implications for both corporations and nonprofits before getting involved in donation matching. Each organization should assess their specific needs and determine if donation matching is a good fit. 

Nonprofit Fundraising Statistics and Trends

In order to better understand the impact of donation matching on nonprofit fundraising, it is important to review the latest statistics and trends.

Key Fundraising Statistics for 2023

The ways in which people are choosing to make donations are changing, and nonprofits need to ensure that they are up-to-date with the latest trends to ensure that they stay relevant when compared to competing organizations.

According to the stats, 2023 saw a rise in the number of donations via social media and digital fundraising, with 32% of all donations made in this manner. 30% of donations were made by email, while 17% were by website, 15% by print, and 2% by TV or radio ad, with phone calls and text messages coming in as the least popular option, making up just 2% and 1% of the preferred fundraising methods respectively.

Another noteworthy trend is the increasing number of nonprofits utilizing crowdfunding platforms such as GoFundMe and Kickstarter. Crowdfunding can be a great way for nonprofits to generate funds quickly, often without having to rely on donations from individuals, and it is becoming an increasingly popular option for nonprofits.

One of the most important nonprofit sector trends is the increasing prevalence of donation matching. According to statistics, donation matching has grown by 48% over the last three years, and this means that as more corporations and individuals become involved in donation matching, the potential for nonprofits to raise more funds is significantly increased.

The Role of Donation Matching In Fundraising

As we mentioned, donation matching has become an increasingly popular way for nonprofits to raise funds, as it allows for donations to be matched up to a certain amount by corporations or individuals. This can lead to increased donations and help nonprofits reach larger audiences, leading to a greater impact from their work.

Donation matching also allows donors to feel more invested in the organization or cause they are donating towards, as they know that their donation will be matched and thus have double the impact. This can help to encourage individuals to donate more, as well as engage new donors who may otherwise not have considered donating.

Finally, as mentioned, donation matching is an effective engagement and marketing tool for corporations who want to demonstrate their commitment to social responsibility and philanthropy. By offering to match donations from individuals, corporations can show that they are committed to the cause and that they value their customers’ donations - as well as using the positive results from the funds raised as part of a marketing strategy to demonstrate the strength of philanthropic impact.

Charitable Donations and Their Impact 

Charitable donations are an important source of income for nonprofits and can have a dramatic effect on their overall success and impact. Charitable donations come in various forms, including cash donations, goods and services, or volunteer time. While the impact of these donations is clear, it is important to consider the overall trends to determine which type of donation will have the most significant effect.

There has been a trend in repeat giving amongst donors - 2022 saw revenue from one-time online giving decrease by 12%, but at the same time, the revenue generated from monthly giving saw an 11% increase - overall, this repeated monthly donation accounted for over a quarter (28%) of all online giving. Of these, 94% of all donors preferred to give monthly, compared to 3% weekly, 2% annually and just 1% quarterly - this suggests a trend towards donors wanting to be more involved and invested in the causes they are donating to.

In addition, the rise of crowdfunding has been significant - 31.7% of all donations were made through this method, with the average donation amount reaching $66 - this suggests that crowdfunding can be a great way of engaging new donors who may not have considered donating previously.

Overall, it is clear that charitable donations can have an impact on nonprofits and that understanding the trends in donation patterns is key to maximising the potential of these donations. It can have a downside, however, as the total amount of money raised may be lower due to the smaller donations made through crowdfunding and monthly giving. Nevertheless, it is clear that donation matching is an effective tool for engagement and can be a great way for nonprofits to leverage their fundraising efforts.

The Significance of Individual and Corporate Donations

Another factor to understand is the importance of individual versus corporate donations. Both are important, but corporate donations tend to have a greater impact due to larger amounts donated and higher engagement from the donor. According to research by Giving USA, individuals still accounted for the majority (72%) of all charitable giving in 2017, with corporations making up only 5%. 

What is the impact of this? These stats suggest that the majority of donations are coming from individuals, which means that nonprofits must focus on engaging individual donors. To do this, they should focus on creating an effective donation-matching program to encourage larger gifts and incentivize new donors. They should also focus on providing detailed information about their organization and the cause they are supporting in order to increase donor engagement.

Online and Mobile Donations

Another key trend in the world of nonprofit donations is that of online and mobile giving- this is a rapidly growing area and is expected to continue to be an important source of charitable donations in the future.

Online donations are becoming increasingly popular as they provide donors with a convenient and efficient way to donate, meaning that donors can give from anywhere at any time - this is particularly important for remote or international donors who may have previously been unable to donate easily. In addition, online donations also make it easier for nonprofits to track their donations, as all of the donor information is recorded digitally.

Mobile donations are also becoming increasingly popular - mobile donations allow donors to donate to their favorite causes quickly and easily via text message or a mobile-optimized donation page. This type of donation also has the advantage of being able to reach a wider audience, as more and more people are using their phones for daily tasks .

Strategies For Optimizing Online Fundraising Platforms

With this in mind, it is important that charities and organisations have strategies in place to help them optimize the trend of online and mobile donations. Some of the key strategies to keep in mind include:

Make Your Site Mobile Friendly

One of the most important aspects of donation optimization is to make sure that your website or donation page is mobile friendly, as this will help to ensure that donors are able to donate quickly and easily from their phones.

Make Donations Quick and Easy

Another key strategy is to make sure that the donation process is quick and easy - if it takes too long or requires too many steps, then it may be difficult for donors to complete the donation, and you risk losing them.

Incentivize Donors Into Matching Donations

It is also important to incentivize donors in order to encourage them to donate more or give larger donations - this could be through rewards such as discounts or access to exclusive content or experiences related to the cause. By offering incentives, you can increase the likelihood of larger donations and encourage donors to become repeat contributors.

Encourage Donation Matching

The online and mobile spaces can also be used to encourage donation matching - as mentioned, this is when individuals or companies match donations that are made by other donors. Donation matching can be a great way to increase the amount of funds raised, so it is important to make sure that you are encouraging donors to take advantage of this opportunity.

Corporate Philanthropy and Matching Gifts 

Another key area in the world of donations is corporate philanthropy and matching gifts. Corporate philanthropy refers to companies donating a portion of their profits or resources to nonprofit organizations, while matching gifts refer to when companies match the donations that employees make to eligible nonprofits.

This type of donation can be extremely beneficial for both corporations and nonprofits, as it allows corporations to show their commitment to supporting charitable causes while also helping nonprofits increase their funding.

Overview of Corporate Giving Trends

Understanding the current trends in corporate giving can help nonprofits to better target and engage with potential corporate donors. Some of the key trends that are currently affecting the world of corporate philanthropy include:

Increasing Interest in Impact Investing

Impact investing is an increasingly popular form of philanthropy, as it allows companies and individuals to direct their investments towards causes that have a positive impact on society or the environment. This type of giving is particularly popular amongst millennials and younger professionals, as they are more likely to prioritize the effects of their investments.

Focus on Sustainable Solutions

Another key trend in corporate philanthropy is a focus on sustainable solutions - this refers to donations that are aimed at addressing long-term issues or creating lasting change. Companies are increasingly looking for ways to support causes that have a tangible and measurable impact, rather than just providing short-term relief or assistance.

Support for Social Enterprises

Also popular in the world of corporate giving is the increased support for social enterprises - these are businesses that have been set up with the purpose of creating positive social or environmental change, allowing the brand to demonstrate their commitment to and awareness of corporate social responsibility. Social enterprises typically receive funding from a variety of sources, including philanthropists, investors, and corporate donors.

The Role of Employee Matching Gift Programs

As well as donating money, companies can also encourage employees to donate by providing a matching gift program - this is when the company matches donations that are made by their employees up to a certain amount. This type of program can be a great way to engage and motivate staff while also increasing the amount of funds raised for the cause.

A matching gift program also helps to demonstrate the company’s commitment to supporting charitable causes and can be a great way to boost employee morale and engagement.

Maximizing Matching Gift Fundraising

We have seen that matching gift fundraising is an effective way for nonprofits to increase their funding and demonstrate corporate commitment to a charitable cause. To maximize the impact of a matching gift program, it is important to ensure that donors are aware of the opportunity and that employees are encouraged to take advantage of it.

There are a few key steps that can be taken to ensure that your matching gift program is as successful as possible, and these include:

1. Make Donors Aware of the Matching Program

It is important to ensure that potential donors are aware of the opportunity to double their donation through a matching gift program. This can be done through email campaigns, social media posts, or by including information in press releases or printed materials.

2. Educate Employees on Matching Gifts

To encourage employees to take advantage of the program, it is important to provide them with clear information on how to submit a matching gift request. It can also be beneficial to have a dedicated staff member who is assigned to answer any questions or help guide employees through the process.

3. Track and Report

It is essential to track the amount of donations that are made through the matching program, as this will help you understand its effectiveness and also provide valuable data for grant applications. It is also important to report back to donors and employees on the progress of the program and how their donations have had an impact - the latter, in particular, can be very important for donor retention, as people like to know how their charitable contributions have helped. Keep a database to help you keep track of gift-matched donations - use Google Sheets or Excel for an easy-to-reference option.

4. Utilize Technology

There are a number of technology solutions available that can help to automate and streamline the matching gift process, such as online forms or software that can be used to track requests. Making use of these tools can help to make the process easier and more efficient.

By taking the steps outlined above, you can ensure that your matching gift program is as successful as possible. This type of fundraising can be a great way to engage both donors and employees while also increasing the amount of funds raised for your cause.

Nonprofit Marketing and Engagement for Donation Matching

So, now that we understand just why donation matching is so important fro nonprofits, let’s look at how to use marketing and engagement tactics to promote this type of fundraising in your organization.

1. Leverage Digital Channels

The first step is to ensure that potential donors are aware of the opportunity to double their donation through a corporate matching gift program. Social media, email, and other digital channels can be great ways to reach out to potential donors and make sure they’re aware of this opportunity.

Some of the best digital channels for this include :

• Social media – post regularly about the program and share success stories from donors who have taken advantage of it.

• Email campaigns – send out classy and engaging email blasts to current and potential donors with updates on your matching gift program.

• Online forms – create an online form that can be used to easily submit a request for a corporate match.

2. Educate Employees

To ensure that employees take advantage of the program, it is important to provide them with clear information on how to submit a matching gift request and answer any questions they may have. One way to do this is by creating a dedicated section on your website or an internal newsletter to keep staff informed about the program.

3. Host Events

Events can be a great way to engage with both potential donors and employees about donation matching programs. These could include workshops, seminars, or even fundraisers where attendees can learn more about the program and how to maximize its impact.

4. Develop Partnerships

Partnering with companies that have existing matching gift programs can help to increase awareness of the opportunity and increase the amount of funds raised. There are also a number of online platforms that can help to facilitate these partnerships, such as the PayBee fundraising platform.

The Role of Volunteers in Fundraising and Matching Gifts 

Volunteers also play a key role in the success and effectiveness of donation-matching programs, and active volunteer engagement can help to increase the reach and impact of these initiatives. Here’s how volunteers can contribute to a successful donation-matching program:

1. Spread Awareness with GivingTuesday And Other Social Campaigns

Volunteers can help spread the word about your organization’s matching gift program by speaking with potential donors or writing articles for local publications. They can also help to raise awareness by attending events speaking to attendees about the program, and interacting with global events such as the GivingTuesday campaign and similar events.

2. Educate Donors on Matching Programs

Volunteers can also help to educate potential donors about the matching program and how they can take advantage of it. They can provide information on how to submit a matching gift request and answer any questions that donors may have - you may also be able to access volunteer grants to train your workers and give them the tools they need to maximise their success.

3. Contact Companies

Volunteers can contact companies directly to request that they participate in the program. They can provide information about the organization and its mission, as well as any other relevant details that may be helpful in getting a company to join the program and getting them on board with employee donations.

4. Assist with Applications to Match Donations and Gifts

Volunteers can help to ensure that requests for matching gifts are submitted correctly and promptly by providing assistance to check matching gift eligibility, filling out applications or submitting forms online by providing a demo or solid advice. 

5. Make The Most of Volunteer Networks

Volunteer networks are your secret weapon - make sure you make the most of them! Ask your volunteers to spread the word about donation matching programs through their own contacts and networks, and search and use hashtags and events to boost connections and chances for matching.

By leveraging the power of volunteers, organizations can maximize the impact of their donation-matching programs and reach a larger number of potential donors. Volunteers can provide support with outreach, education, and applications - all essential components of a successful program.

Challenges and Opportunities in Donation Matching

As we have seen, gift matching programs are a great way to increase donations for nonprofits - but they can come with their own unique challenges, as well as opportunities.  

1. Corporate Policies

One of the biggest challenges is that each company has their own set of policies and guidelines for gift-matching programs. It can be difficult to keep up with the changing policies of different companies, so it’s important to stay informed and up-to-date.

2. Limited Resources

Another challenge is the limited resources of both companies and nonprofits. It can be difficult for companies to commit to matching donations due to budget constraints, while nonprofits may struggle with having enough resources to support their own matching gift program.

3. Awareness

Awareness of donation matching programs can also be an issue - both for potential donors and companies. It’s important to make sure that donors are aware of the matching gift opportunities out there, as well as how to take advantage of them. Similarly, it’s important to reach out to potential corporate partners and explain the benefits of participating in a matching gift program.

Future Opportunities For Donation Matching

It is also important that companies are nonprofit organisations are always looking to the future, and seeking out new and innovative ways to increase donations. This may include:

1. Technology Integration

The integration of technology into the donation matching process can help to streamline the entire process, from donor outreach to application submission. This could include automating processes such as submitting applications online or setting up a platform or site that allows companies and nonprofits to manage their gift matching program in one place.

2. Donor Engagement

Nonprofits should also look for ways to engage their donors and build relationships with them. This could include creating a community for donors, providing special offers or incentives, or even offering recognition for those who take advantage of matching gift programs.

Conclusion: The Future of Donation Matching 

In short, it is clear that donation matching is a great way for nonprofits to increase donations and can unlock a world of opportunities for both companies and nonprofits. However, it is important that organizations are aware of the challenges that come with donation matching and take steps to ensure that their programs are successful.

Excellent communication, , engagement and use of technology all have a part to play in convincing companies to participate, and in making sure that donors are aware of the opportunities available to them. With the right approach, donation matching can help nonprofits build long-lasting relationships with their partners and supporters - creating a more sustainable future for their organization.

As technology continues to grow and evolve, the future of donation matching looks bright - it has never been easier to connect with potential donors, and new opportunities for collaboration are always emerging. By staying up-to-date on the latest trends, nonprofits can make sure that they are always at the forefront of this exciting movement.

FAQs Section

What is donation matching?

In simple terms, donation matching is when a company matches the donations of its employees to eligible charities and nonprofit organizations. This can be done in a variety of ways, such as dollar-for-dollar matches or percentage matches, and the aim is to increase the total amount that is received by the charity.

How does corporate donation matching work?

Corporate donation matching works by allowing companies to match their employees' donations to selected charities or nonprofit organizations. This can be done in a number of ways, such as offering a dollar-for-dollar match, which sees the company double the donation of their employee essentially for free, or through offering a percentage match, which sees them match a certain percentage of their employees' donations up to a maximum amount.

What are the benefits of corporate donation matching?

There are many benefits to corporate donation matching. Firstly, it encourages companies to become more socially responsible and engage with their local community. It also encourages employees to give back to their communities and become more engaged with causes that are important to them. Finally, it offers the opportunity for companies to use their resources and philanthropy to make a real impact on the lives of those in need.

Does matching increase donation rates?

Yes, donation matching can indeed increase donations. This is because it creates an incentive for donors to give more, as they know that their donation will be matched by the company. It also encourages donors to donate more frequently, as they know that their contribution will be doubled and have a greater impact. In addition, corporate matching programs can help to raise the profile of charities and nonprofits, which could boost donor awareness and lead to more donations in the future.

What is an example of a matching gift challenge?

A matching challenge is an initiative that encourages donors to give more by offering them the chance to have their contributions matched - names such as the Johnson and Johnson Matching Gifts Challenge are a key example of this. For example, a company may offer a one-time match of up to $10,000 for donations made in a certain period of time. This could encourage donors to give more than they otherwise would, as they know that their contribution could be doubled. Alternatively, an employer may offer an ongoing match on donations up to a certain percentage or dollar amount made by their peer.