Social impact initiatives in the workplace often include volunteer time off, company-wide volunteer days, and peer-to-peer fundraising events.
However, with individuals giving $319.04 billion to charity in 2022, corporate donation matching programs are rising in popularity, allowing organizations to show support to their employees and the receiving nonprofits and charities.
What is donation matching?
Donation matching is a social impact initiative in which an organization matches its employees’ monetary contributions to a specific nonprofit or charity. Donations will have the potential to be doubled (or even tripled in some cases) while employees will feel an unmatched level of support from their workplace.
This blog looks at the four components associated with setting up a corporate donation matching program to amplify your charitable giving in no time.
Why is donation matching important?
- Employee engagement– employees feel closely connected to companies that value and appreciate them; in turn, increasing the level of dedication to their job. Donation matching is a powerful approach to show your employees that you care about their interests.
- Increase in donations– charities and nonprofits will receive an influx of funds, which they can use towards improving their programs, buying new equipment, hiring more staff, and any other specific needs they may have.
- Brand perception- donation matching is an area of corporate social responsibility (CSR) your organization should be proud of and want to share externally. Future (and current) employees, investors, and customers who come across your CSR efforts will perceive you favourably, making it more likely they will want to work, invest, and buy from you.
Components of donation matching:
1) Donation matching limits
Set a minimum limit: What is the minimum amount that employees need to donate to be eligible for donation matching? For instance, Starbucks matches donations starting at $25 to qualified nonprofit organizations.
Set a maximum limit: Determine a maximum limit for the entire donation matching program. Choose a limit that won’t strain your annual budget yet will allow for an abundance of employees to give back and have that gift matched.
2) Donation matching ratio
The majority of companies will match donations at a 1:1 ratio. For every $1 an employee gives, their employer will exactly match that amount—in essence, “doubling the donation.” However, some companies will even choose to give as much as $2 or $3 for every dollar an employee donates.
3) Start and end date
Determine how many months employees will be eligible to make a donation and have that matched by your organization. It is recommended to keep this program open for 6-12 months of the year. While some employees might not be in the right financial state to donate at the beginning of the program, stretching out the eligibility to the majority of the year ensures maximum participation.
4) Donation tracker
- To ensure you do not exceed your maximum limit for your donation matching program, you will need to keep track of:
- The total amount contributed
- The total amount remaining
For example, Everest Management has set a maximum donation matching limit of $10,000 for their program. The matching program is set to last 6 months (from June–December 2023). Using Kambeo’s donation matching software, Everest Management can frequently check the amount of employee donations they have matched to date while closely monitoring the remaining donation pool available.
As 96% of employees have a strong preference for their company to match donations, establishing a donation matching program is a sensible strategy to accommodate the growing demand from your current and future employees. Leverage Kambeo’s donation matching software to set a ratio, limit, and deadline for your donation matching program, and watch your corporate donations grow!
