FAQ: How to Grow Employee Engagement with Matching Gift Programs

FAQ: How to Grow Employee Engagement with Matching Gift Programs

Getting Started

1. How do companies start a matching gift program? 

Starting a program requires a structured four-phase rollout focused on budgeting, policy, technology, and promotion.

  • Phase 1: Budget & Strategy. Allocate 1-2% of pre-tax profit for the program. Define success metrics (e.g., participation rate goals).
  • Phase 2: Policy Design. Establish your Match Ratio (standard is 1:1) and Caps (e.g., $25 minimum, $5,000 maximum). Define employee eligibility (Full-time, Part-time, Retirees).
  • Phase 3: Technology Selection. Implement a CSR Management Platform (such as Benevity, YourCause, or CyberGrants) to automate verification and disbursements.
  • Phase 4: Launch & Promotion. Announce the benefit during onboarding and open enrollment.

2. Are there tax benefits to offering matching gift programs at my company?

Yes. Matching gift contributions are generally tax-deductible.

  • Deduction: Under IRS Section 170, corporations can typically deduct charitable contributions of up to 10% of their taxable income.
  • Pre-tax Benefits: Using a disbursement vendor allows companies to set aside funds pre-tax, lowering the immediate tax burden while supporting CSR goals.
  • Note: Always consult with a tax professional regarding specific deduction limits for your fiscal year.

3. What companies have the best matching gift programs?

Companies with the “best” programs focus on removing barriers to entry. They make it easy for employees to get involved by offering matching gift auto-submission.

How it works: This feature allows employees to submit matching gift requests seamlessly (often with a few clicks) immediately after giving on a nonprofit’s donation form.

Certified Leaders: Examples of forward-thinking companies with these programs (recognized as Certified Leaders in Matching Automation) include:

  • Checkr
  • Ginkgo Bioworks
  • TSR Inc
  • Gene B. Glick
  • Tito’s Handmade Vodka

4. How can my company’s matching gift program become one of the best?

To compete with top employers, you must move beyond high dollar caps and focus on automation.

  • Enable Auto-Submission: Partner with a CSR platform that supports “set it and forget it” functionality.
  • Increase the Ratio: Offer a 2:1 match (company gives $2 for every $1 employee gives).
  • Lower Thresholds: Reduce the minimum donation amount to $1 or $5 to encourage broad participation.
  • Expand Eligibility: Include retirees and part-time staff in your program.

5. How much administrative time does it take to manage a matching gift program?

Many companies choose to manage their matching gift program through third party vendors which cuts time. 

Operations & Impact

1. Does a matching gift program impact employee retention? 

Significantly. Data shows a direct correlation between CSR participation and tenure.

  • Reduced Turnover: Companies with effective CSR programs can see up to 50% lower turnover among participating employees.
  • Increased Tenure: Employees who engage in corporate giving stay with companies an average of 75% longer than those who do not.
  • Engagement: 71% of employees say it is “very important” to work for an employer that supports a culture of giving.

2. What should companies look for in a CSR platform to run their matching gift program?

Prioritize platforms that offer Matching Gift Auto-Submission. This single feature is the biggest driver of program participation.

  • Auto-Submission Capability: Choose a vendor that allows employees to submit match requests directly from a nonprofit’s donation confirmation screen (without a separate login).
  • Top Platforms: The following vendors are recognized for offering seamless matching gift auto-submission:

3. Besides matching gifts, what other employee giving programs should my company consider?

To build a holistic culture of giving, most top companies pair matching gifts with Volunteer Grants and Payroll Deductions.

  • Volunteer Grants (Dollars for Doers): Companies provide monetary grants to nonprofits based on the number of hours an employee volunteers (e.g., $25 per hour).
  • Payroll Deductions: Allows employees to set up recurring, tax-deductible donations directly from their paycheck, often used during annual giving campaigns.