Smart grant seekers can take advantage of a growing trend in the world of philanthropy, matching gifts or employee-directed giving.
Unfortunately, this is free money that nonprofits often overlook. The popularity of workplace giving is clearly on the upswing. In 2015, 65% of large companies match while 28% of small to mid-size companies now match, a boost from previous years.
And businesses are looking at employee giving as a direct component of overall employee engagement, with the key metrics of success continuing to be how many employees participate in their company’s programs and how much money they give. But employee surveys and benchmarking are also becoming important, and companies are increasingly looking to the best practices of other companies to grow engagement.
Such giving is an extension of corporate philanthropy; matching gift programs are designed to be the means by which companies support employee charitable giving. Companies match donations made by employees to a wide range of nonprofits.
“Many have said that workplace giving is dead,” according to Snapshot 2015: The New Corporate DNA—Where Employee Engagement and Social Impact Converge. “The Snapshot reports reveal quite the opposite is true. The traditional model of top down, corporate-directed giving is no longer acceptable. And, workplace giving and employee engagement is alive and evolving at a very rapid pace.”
- An estimated $6-$10 billion in matching gift funds goes unclaimed per year.
- The median employee participation rate for matching gift programs is 9%.
- Mentioning matching gifts in fundraising appeals results in a 71% increase in the response rate and a 51% increase in the average donation amount.
- 93% of companies have a minimum match requirement of less than or equal to $50.
- 80% of companies’ matching gift maximums fall between $500 and $10,000 annually per employee.
Large corporations are heavily involved.
For example, BP-British Petroleum offers practically every type of employee giving program and allows the general public to track which organizations are receiving donations online in real time. The company provides a standard 1:1 match on all donations made by employees. The company also offers a 100% match on all money raised by employees for charity runs/walks.
And, there is the Gap Corporation. This includes Banana Republic, Old Navy, Piperlime, Athleta, and Intermix. It offers a matching gift program as well as multiple types of volunteer grants. Gap employees can request matches on donations made to almost all types of nonprofits. Match limits range from $1,000 annually for part-time employees to as much as $10,000 for Senior VPs and above.
Info: https://goo.gl/hxV3ey (Snapshot).
|Company||Max Match Amount||Match Ratio||What it Funds|
|General Electric||$25,000||1:1||Educational institutions (K-12 included); health and human services; arts and cultural; civic/community organizations; environmental organizations|
|Soros Fund Management||$300,000||Up to 3:1||Educational institutions (K-12 included); health and human services; arts and cultural; civic/community organizations; environmental organizations|
|BP (British Petroleum)||$5,000||1:1||Educational institutions (K-12 included); health and human services; arts and cultural; civic/community organizations; environmental organizations|
|State Street Corporation||$35,000||1:1|
|ExxonMobil||$22,500||Up to 3:1||Arts and cultural organizations and higher education|
|Johnson & Johnson||$20,000||Up to 2:1||Educational institutions (K-12 excluded); health and human services; arts and cultural; civic/community organizations; environmental organizations|
|Boeing||$6,000||Up to 1:1|