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A Guide for a Successful
Matching Gift Program
Guide to Creating a Successful Matching Gift Program
Introduction
T
he Council of Michigan Foundations practices. In addition, recent national surveys
(CMF) is a membership association of about matching gift programs conducted by the
more than 400 foundations and corporate Council for Advancement and Support of
giving programs that make grants for charitable Education (CASE) and Blackbaud were reviewed.
purposes. Our mission is to enhance, improve, and The recommendations offered in this Guide
increase philanthropy in Michigan. We often are a general blueprint for consideration. We
receive questions about matching gift programs, recognize that implementation and success of any
usually from corporate foundation and corporate matching gift program will vary depending upon
giving staff recently assigned to start a program or the structure, goals, and needs of an individual
manage an existing one. corporation.
This Guide has been produced to help In addition it must be noted that a number
answer common questions and provide sample of private foundations, such as the Kresge
matching gift program forms and other resources. Foundation, and public charitable foundations,
To produce this Guide, in 2001 CMF surveyed such as Rotary Charities of Traverse City, have
more than 65 administrators and staff members developed matching gift programs for their staff
of corporate foundations and corporate giving and members. While not the primary audience,
programs with matching gift programs across the this Guide should be helpful for these types of
United States to identify current common foundations as well.
❖
1
Guide to Creating a Successful Matching Gift Program
The Case for Matching Employee Gifts
G
eneral Electric started the first matching Simply stated, matching gift programs encourage
gift program in 1954. Its goal was to employees to give on an individual level through
help the corporation and its employees the employer’s offer to match each donation at a
support the colleges and universities that had prescribed level. Employees find such programs
prepared employees for their careers. Many appealing because they leverage their gifts of time
Michigan companies have since started matching and money to organizations and causes they care
gift programs, with increased interest in the last about.
decade. According to those surveyed for this
While there are known matching gift publication, matching gift programs produce
programs in 28 industry classifications, the important benefits for the corporation and
greatest number are in the manufacturing sector, corporate foundation, such as:
according to the 2002 Blackbaud Matching Gift ❖ Increased visibility in the community.
Survey Data Summary. Insurance, financial Having the corporation or corporate
services and utilities are the other three large foundation name on the Matching Gift
classes of industries supporting such programs. Donor Form spreads word of its role as a
“Corporations are looking for better ways to corporate citizen to hundreds or
serve their communities’ needs and the needs of potentially thousands of nonprofit
their employees,” said Susan Broman, executive organizations and their employees, board
director of the Steelcase Foundation in Grand members, volunteers, and clients.
Rapids, Michigan, which has had a matching gift ❖ Increased community impact over time by
program since 1993. including the employee donations
Companies that have created matching gift leveraged by the matching gift
programs cite the following reasons for doing so: opportunity. Once employees begin
participating in the matching gift program,
they tend to make ongoing annual
❖ Advance their mission; donations.
❖ Engage and connect employees in that “These matching gift programs are a
mission; wonderful way for the corporation and its
❖ Complete the overall giving program by employees to be partners in bettering our
expanding the number of organizations communities and helping those less fortunate,”
eligible to receive grants; said Scott Seeburger, retired community-relations
❖ Be a better corporate citizen; manager for Dow Corning Foundation of
Midland, Michigan.
❖ Initiate a “virtuous cycle” that provides
donations to organizations that help
educate their employees;
❖ Improve employee relations, employee
recruitment, and employee morale;
❖ Foster better public relations to improve
their corporate images.
Guide to Creating a Successful Matching Gift Program 2
Designing a Matching Gift Program
T
he key to developing a successful Bloodworth, Secretary/Treasurer of the
corporate matching gift program begins in Consumers Energy Foundation of Jackson,
the planning stage. “Clear concise rules Michigan. “A successful program begins by asking
and structure are needed from the outset to the right questions.” And eight key questions
ke
prevent confusion by administrators, employees have been identified that deal with the design and
and recipient organizations,” notes Carolyn operation of a matching gift program.
1
A
What kind of organizations do we match?
clear statement of eligible nonprofit
charitable organizations and those not eligible
foundations. For example, Consumers Energy has
three targeted issues: higher educational
needs to be made. For example, groups often institutions, community foundations, and food
cited as ineligible are religious and political. banks. The Steelcase Foundation matches gifts for
The following four options are examples of education, the arts, and the environment.
the type of organizations matched depending on Libraries, art museums and performing arts
the kind of company and nature of the work groups, historical museums, zoos and botanical
force. gardens are all examples of recipients according to
the CASE survey.
Option One is to match employee gifts to
their colleges, universities and secondary Option Three is to match employees’ gifts
hree
institutions. The General Electric Program started to local United Ways. For example, DTE Energy
this way. The Ford Motor Company Fund Foundation matches 50 percent of what
matches employee and retiree contributions to employees give to United Way, as part of their
qualified universities and colleges. The Dow program. Twelve percent of the respondents to
Chemical Company Foundation matches gifts to the CASE survey report that they only use this
colleges and universities on a one-to-one basis. option.
The 2000 survey of 1,007 companies by the Option Four is to match gifts to all
Four
Council for Advancement and Support of nonprofit organizations with a 501(c)(3) status in
Education (CASE) found that 47 percent of the geographic area the company serves. The
companies surveyed limit their match program to SPX Corporation is one example of the growing
educational institutions. The 2002 Blackbaud number of companies using this option. While
survey of 11,500 companies using their matching the CASE survey also reports that only 23 percent
gift database software found that 68 percent of of the companies surveyed use this option, its use
respondents are focusing their matching gift is growing.
programs on four-year colleges and universities. It is important to note that the majority of
Option Two is to match gifts to targeted corporations designate their match as unrestricted
nonprofit organizations addressing issues such as or for the same purpose as the employee’s gift.
the arts, environment, literacy, and community
Guide to Creating a Successful Matching Gift Program 3
2
T
Which employees are eligible?
he majority of corporations surveyed
for this publication allow any full-time
The CASE survey reports that 39 percent of
respondents encourage corporate directors to
employee with a minimum of one year of service participate in the matching gift program. DTE
to participate in the matching gift program. Both Energy is one Michigan company that encourages
the CASE survey (75 percent) and Blackbaud’s director participation. And 33 percent of the
2002 survey summary (93.5 percent) confirm this CASE survey respondents report that retirees take
finding. The eligibility of employees rests with advantage of the program. Because retirees are a
the company because most nonprofit growing class, the future financial implications for
organizations do not have the capacity to verify the corporation must be considered when
employment status. including retirees.
3
A
What should the level of match be?
n employee could use the whole match for
one gift to a nonprofit, so it is important to
$2,000 as the annual maximum match per
employee. The maximum match payment per gift
have both a minimum and a maximum level for varies greatly depending on the status of the
individual matches and for each employee. The employee. The Blackbaud survey reports that 17
common minimum for a matching payment is $25 percent of respondents have $1,000 as the
as confirmed by nearly 50 perent of respondents maximum budgeted per employee per year—a
to the Blackbaud survey. Comerica Bank for level confirmed by the majority of respondents to
example has a minimum match of $25 with the CMF survey.
4
W
What should the ratio of match be?
hile the matching rate can be tiered based
on the seniority of the employee, it is
Some corporate foundations and giving
programs increase the match ratio at certain times
recommended that every employee be treated of the year, for example during Thanksgiving or
equitably by having one matching rate. The the winter holidays. While there are no legal
Blackbaud 2002 summary reports that 73.2 prohibitions on increasing or decreasing the
percent of respondents indicate they match matching gift amount during a fiscal year, legal
employees on a 1:1 ratio. This ratio is supported experts note that once a matching gift program is
further by the 2000 CASE survey that reported 85 in place, the corporate foundation or giving
percent use a dollar for dollar match. CMF’s 2001 program is responsible for funding requests
survey also found the matching rate of 1:1 as properly made during that time period. In
being most typical. addition, the matching amount should reflect the
matching gift program’s funding levels at the time
the request was initially filed by the employee.
Guide to Creating a Successful Matching Gift Program 4
5
B
How often should the match be paid out?
ecause the volume of matching checks can
be large, many matching programs pay
matching gifts semi-annually or even annually.
Nonprofit recipients and employees indicate that
matches continuously if they have the staffing knowing the payment is scheduled is more
resources and needed software. While this is the important than the frequency of payment.
optimum practice, it is not unusual to pay
6
T
What type of gifts should be matched?
he studies confirm that matching employees’
gifts of cash or checks are the norm. There
IRS officials say corporate foundations and
giving programs should be careful not to match a
are three major categories in the response to this portion of an employee’s donation that may
question by participants in the Blackbaud Survey. benefit that person directly. An example of this
❖ Gifts made by check or cash are matched would be the donation to attend a benefit event
by 97.8 percent where a certain percentage of the donation covers
the cost of a meal. In response, many companies
❖ Gifts made by credit card are matched by
matching gift forms clearly state that no match
83.6 percent
will be provided for donations that provide a
❖ Gifts of stock/securities are matched by material benefit, such as dinners, golf outings,
60.4 percent tickets or auctions to the employee, a relative, or
While only a small percentage (7.5 percent) designee.
in the Blackbaud survey match volunteer time, the Because many Michigan companies have
Council of Michigan Foundations is receiving a operations in Mexico, Canada and other countries,
growing number of requests for information from the question of matching the gifts of employees at
companies interested in supporting their those plants has been raised. Matching gift
employees’ volunteerism. According to Laura programs that include non-U.S. employees are
Trudeau, program officer with the Kresge rare. However, it may be allowed in response to a
Foundation, formerly with Bank One, programs natural or man-made disaster, and the matching
that match employee volunteer hours are “a gift program may limit matches to an organization,
wonderful way for many employees with limited such as the International Red Cross, that has a
resources to participate in a charitable giving 501(c)(3) tax-exempt status with the Internal
program.” One example of this type of match in Revenue Service and is doing charitable work at
Michigan is the Whirlpool Foundation’s Dollars those foreign sites. Contact CMF directly for
for Doers Program that will make a one time $500 more information on this issue of including
gift per employee to a nonprofit in which an foreign operations in your matching gift program.
employee and family has volunteered 50 hours of
service over a six month period. The Whirlpool
Foundation form is included in the appendices.
Guide to Creating a Successful Matching Gift Program 5
7
E
What should the process be in paying the match?
mployees and recipient organizations need
to know there is a designated contact person
requirements for the recipient nonprofit
organization to a minimum. If payments include
to help answer questions about the program. the date, name and contribution amount,
Questions can be minimized however, if the accounting for the gifts is simplified. “You must
Matching Gift Program form, usually no more remember that the recipient institution handles
than one page, includes the answers to the many different types of donations, including
questions covered above. Creating written matching gifts,” said Melonie Colaianne, vice
program guidelines and requirements for president of the Masco Foundation. “Since the
employees that cover everything from eligible donations are for the benefit of these
types and dollar amounts of donations to steps organizations and those they help, it is in
and deadlines for submitting match requests will everyone’s best interest to try and reduce as much
help avoid misunderstandings and ineligible cost, confusion, redundancy and duplication of
donations. effort whenever and wherever possible. When
Examples of four such program forms are possible, make your matching gift program rules,
included in this Guide. In order to reduce the administrative requirements, guidelines and even
administrative costs to the company or foundation documentation as much like those of other
of handling what are relatively small gifts to corporate foundations or giving programs to
recipient organizations, the information needed provide a consistency for recipient organizations.”
and the procedures for checking on the matching For each gift in excess of $250, the com-
gifts should be kept to a prudent minimum. pany should receive a receipt from the nonprofit
Each form has a section for the employee to organization that receives the matching gift. The
complete and then send along with their gift to the IRS also requires that a corporation, but not a
eligible nonprofit organization. The listing of foundation, must receive a receipt for matching
eligibility criteria on the form is a helpful reminder gifts of more than $250 by the date on which it
to the employee using the form. The Blackbaud files its tax returns, or the actual due date for the
study reports that 91.3 percent of its respondents corporation’s income tax returns, whichever is ear-
start the process by sending the company’s lier. This same legal requirement regarding re-
matching gift form to the nonprofit (usually with ceipts does not apply to foundations, however
their gift). many foundations still require a receipt from a
recipient institution for internal financial and ac-
The nonprofit organization then completes
counting purposes. Additionally, the receipt
the recipient section of the form and returns it to
should state that no goods or services were pro-
the company for verification and payment. The
vided to the foundation or corporation in ex-
form should require that the authorized
change for the donation.
representative of the recipient organization sign
the form certifying that to the best of their There are a number of software products
knowledge they are in compliance with the available to help with the management of
company’s matching gift program criteria. matching gift programs. While CMF has a policy
to not recommend a specific vendor, contact
In addition, a common goal of matching
information for Blackbaud’s Matchfinder product
gift programs is to keep the administrative
and several others is included in the Appendices.
Guide to Creating a Successful Matching Gift Program 6
8 How should the program be communicated with
employees and eligible recipients?
P rogram administrators surveyed for this Guide
identified the single most important factor in
the success of their programs as Communication!
❖ A wish to leave a lasting imprint on
society by making a significant
difference;
Communication! Communication! “Letting ❖ A feeling of value and satisfaction
employees and recipient organizations know the through helping people; and
specific criteria of your matching gift program will
go a long way in heading off trouble down the ❖ Tax benefits.
road,” said Susan Broman. If the program is
paying matches semi-annually, the administrator Most companies do not publicize the
should not wait several months to tell an employee matching gift program to eligible nonprofits but
that a requested match received is to an ineligible seem to rely on their employees to get the word
organization. out. However, many nonprofits include a list of
Administrators recommend using internal corporate matching programs in their annual
communications tools—newsletters, brochures, solicitation letters as a reminder to any of those
intranets, and meetings—to remind employees companies’ employees that may be on their
about the matching gift program and to update mailing lists.
them on program changes and successes. Whatever Respondents to the 2001 CMF survey
the communication tool, the matching gift form expressed concern that increased media coverage
needs to be highly visible and accessible to would result in escalating matching gift requests
employees. Encouraging employees to participate that, in turn, could deplete existing budgeted
in your matching gift program, and providing them funds. In addition, respondents expressed
with the information needed to make decisions concern that other charitable causes would
about their charitable giving, is another best practice inundate them with requests for assistance and the
of effective programs. According to those perceived negative reaction if those requests were
surveyed, many employees want and need to be denied. Many companies issue no press releases
educated about the benefits, rules and results of on matching gifts and allow the recipient
donating their money to worthwhile causes. organization to handle any media contacts, but do
“A solid matching gift program begins with have a designated corporate spokesperson
providing employees educational material to help available for interviews.
them learn about the need for giving and what it A common question for administrators of
will mean for them, their families and their new programs: how many employees should we
communities,” said Cora Barrow, Contributions expect to participate? The level of participation is
Administrator for the Matching Gift Plan of the in many ways directly affected by the amount of
PQ Corporation in Detroit. visibility and promotion the program is given by
Reasons for giving should be a focal point of the company. It is not uncommon for
any informational dialogue with employees when participation rates to range between 30 and 50
outlining charitable programs such as a matching percent of eligible employees. However, there are
grants initiative. Those reasons may include: examples where that range has increased when the
❖ Giving back to a supportive community; company, with employee input, decides to
challenge employees to respond to an issue or
❖ A desire to perpetuate a certain community emergency.
viewpoint or philosophy;
❖ A memorial to a friend or loved one;
Guide to Creating a Successful Matching Gift Program 7
Conclusions
I
n sum, based on the survey of Michigan ❖ Operate the program with a simple one-
companies and literature review conducted page matching gift program form with
in preparing this Guide, the following both employee and recipient verification
conclusions are offered about matching gift sections;
programs. The majority of programs: ❖ Provide the form to employees on a
continual basis through their payroll
❖ Match annual gifts of full-time employees system, newsletter or other communication
with a minimum of one year of service, tool;
and a growing number of programs ❖ Have a designated contact person for
include corporate directors; both employees and recipient
❖ Match employee donations on a 1:1 basis; organizations.
❖ Provide a minimum match of $25 with a Finally, because both state and federal laws
maximum of $1,000 in donations do change concerning charitable giving, the
per employee per year; Council of Michigan Foundations recommends
review by legal counsel at least every other year to
❖ Will match employee gifts of cash or
ensure adherence to all relevant rules and
stock;
regulations.
❖ Fund educational institutions, although
the number of programs matching all
501(c)(3) nonprofit organizations in a
company’s service area is growing;
❖
Guide to Creating a Successful Matching Gift Program 8
Appendices
Sample Forms
I. Consumers Energy Foundation
II. Whirlpool Foundation
III. Steelcase Foundation
.
IV The Kresge Foundation
Software Vendors
V. Software Contact Information
Guide to Creating a Successful Matching Gift Program
Appendix I—Consumers Energy Foundation
Foundation
Guide to Creating a Successful Matching Gift Program
Guide to Creating a Successful Matching Gift Program
Guide to Creating a Successful Matching Gift Program
Appendix II—Whirlpool Foundation
Foundation
Guide to Creating a Successful Matching Gift Program
Guide to Creating a Successful Matching Gift Program
Guide to Creating a Successful Matching Gift Program
Guide to Creating a Successful Matching Gift Program
Appendix III—Steelcase Foundation
Foundation
Guide to Creating a Successful Matching Gift Program
Appendix IV—The Kresge Foundation
Foundation
Guide to Creating a Successful Matching Gift Program
Appendix V—Software Contact Information
Blackbaud, Inc. MicroEdge
Matchfinder Gifts
Financial Edge MicroEdge, Inc.
2000 Daniel Island Drive 619 West 54th Street, 10th Floor
Charleston, SC 29492-7541 New York, NY 10019
800/443-9441 800/899-0890, ext 250
FAX: 843/216-6111 info@microedge.com
www.blackbaud.com www.microedge.com
Bromelkamp NPO Solutions, Inc.
Pearl FIMS
106 East 24th Street 89 North State St.
Minneapolis, MN 55404 Concord, NH 03301
612/870-9087 603/224-3400
FAX: 612/870-9616 FAX: 603/228-5718
info@bromelkamp.com info@nposolutions.com
www.bromelkamp.com www.nposolutions.com
CyberGrants
CyberGrants, Inc.
Two Dundee Park
Andover, MA 01810
978/824-0300
FAX: 978/824-0301
sales@cybergrants.com
www.cybergrants.com
Dyna-Quest
Grant Administrator
Dyna-Quest Technologies, Inc.
365 Boston Post Road, 144
Sudbury, MA 01776
978/443-3073
FAX: 978/443-8634
www.dyna-quest.com/contact.htm
Guide to Creating a Successful Matching Gift Program
The Council of Michigan Foundations would like to give a special thanks to the administra-
tors, directors and employees of the corporations and/or their related foundations that partici-
pated in our survey and provided valuable information and suggestions for a successful matching
gift program, including:
Amerisure Mutual Insurance Company JSJ Corporation
Charles Stewart Mott Foundation Karmazin Products Corporation
Colgate-Palmolive Company Kellogg Company
Comerica Charitable Foundation Kmart Corporation
Comerica Inc. Masco Foundation
Consumers Energy Foundation Mazda (North America) Inc.
Consumers Energy/CMS Energy Mead Corporate Foundation
Continental Teves Inc. Monroe Auto Equipment Company
CoreStates Financial Corporation Nationwide Mutual Insurance Company
DaimlerChrysler Corporation Northern Telecom Inc.
Detroit Edison Company PACCAR Inc.
Difco Laboratories Peterson Consulting Ltd. Partnership
Dow Chemical Company Pharmacia Foundation
Dow Corning Corporation Proctor & Gamble Company
Eaton Corporation Sara Lee Corporation
Federal-Mogul Corporation Scientific Brake & Equipment Company
Fleet Financial Group SPX Corporation
Ford Motor Company Standard Products Company
General Motors Corporation Steelcase Foundation
Georgia-Pacific Company Steelcase Inc.
Gerber Products Company U.S. Bancorp
Haworth Inc. W.K. Kellogg Foundation
Ingersoll-Rand Company Whirlpool Corporation
J.P. Morgan Chase & Company Wolverine World Wide Inc.
In addition, the following national philanthropic organizations were contacted in preparing this
Guide:
American Association of Fund-Raising Counsel
Association for Research on Nonprofit Organizations and Voluntary Action
Council for Advancement and Support of Education
Council for Aid to Education
Council on Foundations
Internal Revenue Service
Michigan Attorney General’s Office
National Association of College and University Business Officers
National Center for Charitable Statistics
National Charities Information Bureau
National Commission on Philanthropy and Civic Renewal
National Committee for Responsive Philanthropy
National Committee on Planned Giving
National Council of Nonprofit Associations
Society of Fund Raising Executives
Guide to Creating a Successful Matching Gift Program
Council of Michigan Foundations
P.O. Box 599
Grand Haven, MI 49417
616/842-7080
Fax: 616/842-1760 or 842-3010
E-mail: cmf@cmif.org
www.cmif.org
Written by:
Robert S. Collier
Michael B. Gallagher
Vicki J. Rosenberg
Published:
November 2002
Cost: CMF members: Download at no cost from www.cmif.org, “Member’s Only” section
Print copy available from CMF office at $5 each
Non-members: Order from CMF office at $15 each; pre-payment required
Guide to Creating a Successful Matching Gift Program
