How Small Companies Can Get Started with Matching Gifts

How Small Companies Can Get Started with Matching Gifts

/in /by

Corporate giving is one of the most impactful ways for companies to support charitable causes while engaging employees. While large corporations have long been the primary drivers of matching gift programs, small companies can also tap into this valuable opportunity.

Still, for many small businesses, the idea of offering matching gifts may seem daunting, especially if they lack the resources or know-how. However, getting started with matching gifts is easier than ever for companies of all shapes and sizes.

In this guide, we’ll explore how small businesses can introduce matching gift programs, the benefits of doing so, and the tools and resources available to make the process seamless. We’ll cover:

Small companies’ matching gifts programs have become a crucial part of workplace giving. Today, offering matching gifts is an accessible way to amplify charitable donations and engage employees alike. Small companies are using matching gifts to align their values with their philanthropic efforts, creating positive outcomes for both their business and the communities they serve.

In the following sections, we’ll break down exactly how small businesses can take advantage of this growing trend.

What Are Matching Gifts?

A matching gift program is a corporate philanthropy initiative in which companies match their employees’ charitable donations to eligible nonprofit organizations. Employees get to amplify the impact of their donations, while companies can enhance their corporate social responsibility efforts, improve employee engagement, and foster a culture of giving.

Typically, matching contributions are made at a 1:1 ratio, meaning that for every dollar an employee donates, the company will match it with a donation of its own. However, many companies offer more generous matches. Some match donations at a 2:1 or 3:1 ratio, meaning the company gives twice or three times the amount of the employee’s donation, further incentivizing charitable giving. This not only increases the charity’s overall contributions but also makes employees feel even more motivated to give, knowing that their donations are having a greater impact.

The Benefits of Offering Matching Gifts for Small Companies

For small companies, the benefits of matching gifts extend beyond just fulfilling a charitable cause. The process of offering matching gifts can create a positive ripple effect in the workplace and the broader community. Let’s explore these benefits in more detail:

1. Boost Employee Morale and Retention

Employees who feel that their employer supports causes they care about are more likely to be satisfied with their job and remain with the company long-term. Matching gift programs provide a tangible way for businesses to engage their employees in meaningful philanthropy and improve morale.

2. Expand Your Philanthropic Reach

Matching gift programs allow small companies to amplify their charitable contributions. Even with a limited budget, businesses can still make a significant impact by matching their employees’ donations. This leads to larger total donations for nonprofits and helps the company build stronger relationships with the causes it supports.

3. Attract Top Talent

As employees increasingly prioritize companies that align with their personal values, a robust matching gift program can be a competitive workplace advantage. Potential employees will see the company as one that values community engagement and social responsibility, and will want to be involved.

4. Strengthen Community and Brand Reputation

Corporate social responsibility is increasingly important to both consumers and employees. By investing in matching gift programs, small businesses demonstrate their commitment to the community and enhance their brand image, which can lead to positive publicity, increased loyalty, and stronger customer relationships.

How Small Companies Can Start Offering Matching Gifts

Getting started with a matching gift program might seem intimidating for small businesses, but the process is much more straightforward than it appears. Here’s a step-by-step guide to launching your program:

1. Set Clear Objectives & Guidelines

Before you roll out a matching gift program, it’s crucial to establish clear goals. Therefore, ask yourself what you want to achieve with the program. (E.g., increase employee engagement, boost donations for a specific cause, etc.)

From there, you’ll need to establish specific program guidelines. This should include:

  • Eligibility Requirements for Employees: Clearly outline which employees are eligible for matching gifts. For example, are the matches available only to full-time employees, or will part-time and retired employees also qualify? Define whether employee spouses or board members are eligible as well, as this can vary by company.
  • Eligible Nonprofits and Causes: Determine which charitable organizations are eligible to receive matching gifts. Will you match donations to any 501(c)(3) nonprofit, or will the company focus on specific sectors or causes, such as education, healthcare, or environmental protection?
  • Deadlines for Matching Gifts: Set clear deadlines for employees to submit matching gift requests. For instance, will requests need to be submitted within 30 days of the donation, or will the company allow a longer time frame? Some companies have fiscal or year-end deadlines, while others may have rolling expirations.

By setting clear objectives and guidelines, you create a structured and transparent matching gift program that employees can easily understand and participate in, leading to greater engagement and success.

2. Determine Your Budget

When setting up your matching gift program budget, it’s important to define the match ratio, donation limits, and overall program costs.

First off, the matching gift ratio determines how much the company contributes in relation to the employee’s donation. A typical starting point is a 1:1 match, but small companies may offer lower or higher ratios based on their available resources. From there, you’ll need to establish minimum and maximum donation limits. Set a minimum donation (e.g., $25) that employees must contribute for the company to match it, and a maximum match (e.g., $2,500) to keep costs manageable. This ensures the program is scalable and aligns with your company’s budget.

Overall, you’ll want to start with a conservative budget, especially if it’s your first time offering matching gifts. For example, a 1:1 match with a $1,000 maximum could cost around $50,000, depending on your employee count and whether all qualifying individuals reach the cap. As the program grows, you can adjust the match ratio or limits according to your budget.

3. Choose the Right Matching Gift Platform

One of the easiest ways to set up a matching gift program is by using a matching gift platform. Many companies now offer affordable, user-friendly solutions tailored to small businesses. For example, dedicated platforms like Selflessly, Millie, and Uncommon Giving are perfect for small businesses like yours.

Many of these platforms are even CLMA-certified (Certified Leaders in Matching Automation), which ensures they offer matching gift auto-submission, simplifying the process for both companies and employees.

4. Communicate the Program to Employees

Once your matching gift program is set up, the next critical step is ensuring that employees are fully informed and motivated to participate. Clear and consistent communication is key to driving engagement and making the program successful.

Here’s how you can effectively communicate your matching gift program to employees:

  • Utilize Multiple Communication Channels: Use a variety of internal communication channels to reach employees where they are most active. This might include emails, company-wide meetings, intranet posts, or even internal newsletters.
  • Provide Clear and Simple Instructions: Don’t leave employees guessing about how to participate. Provide step-by-step instructions for submitting a matching gift request. This should include where to find donation forms, how to check if they qualify, and what documentation (if any) is required.
  • Encourage Participation Through Friendly Reminders: After the initial announcement, keep the program top of mind with periodic reminders. This can include monthly emails, reminders during team meetings, or updates during company-wide calls. Share stories of employees who have successfully used the program, showing real-world examples of how their participation made an impact.
  • Incorporate Program Information into the Onboarding Process: Don’t forget to include the matching gift program in your new employee orientation. New hires are more likely to engage with the program if they are introduced to it during their initial experience with the company. This sets the tone early on, encouraging long-term participation.
  • Get Your Program Added to Double the Donation’s Database: Ensure that your matching gift program is added to Double the Donation’s matching gift database. Using the easy form here, you can make your program visible to employees when they donate to their favorite nonprofits through the platform.

By effectively communicating your matching gift program, you’ll increase employee awareness and participation. The more employees understand how the program works, the easier it will be for them to get involved, thereby boosting both the program’s success and the impact of the company’s charitable efforts.

See it in Action: 3 Small Businesses that Match Gifts

As small businesses increasingly recognize the value of supporting charitable causes, many are offering matching gift programs to their employees. These programs not only help employees amplify their impact but also enhance the company’s community engagement.

Here’s how three inspirational small businesses (with fewer than 60 employees each) have embraced matching gifts:

First Person Advisors

First Person Advisors is a benefits and compensation advisory firm based in Indianapolis, Indiana. Since its founding in 1998, the company has worked alongside more than 350 other businesses to provide cost-effective, customized employee benefits and compensation solutions. With a staff of approximately 55 employees, First Person Advisors is deeply committed to supporting its community.

The company offers a 1:1 matching donation for gifts between $25 and $2,500 made by both full-time and part-time employees. The matching gift program is available for donations to most 501(c)(3) organizations, empowering employees to contribute to causes they care about.

Patrick Lumber Company

Patrick Lumber Company, a family-owned business based in Portland, Oregon, has been a leading manufacturer and distributor of high-grade wood products for over 100 years. The company operates with a tight-knit team of 30 to 40 employees who are dedicated to providing excellent customer service and high-quality products to a wide range of clients worldwide.

Patrick Lumber offers a 1:1 match for employee donations between $25 and $1,000, available to both full-time and part-time employees. Donations can be directed to almost any registered nonprofit organization, giving employees the flexibility to support a variety of causes. By providing this matching gift program, Patrick Lumber fosters a culture of giving back, amplifying the positive impact of its employees’ contributions.

HumanFirst

HumanFirst is a small, innovative company specializing in human-centered design for business processes, helping organizations optimize operations and improve efficiency. Despite its small size with just 20 employees, HumanFirst is strongly committed to corporate social responsibility.

In doing so, the company offers a 1:1 matching donation for gifts made by full-time employees, with a low minimum of only $1 required. While the upper limit of the match is campaign-specific, the company supports donations to most 501(c)(3) organizations. Employees can easily submit their matching gift requests through HumanFirst’s CSR platform, streamlining the auto-submission process for donors. This simple, efficient experience makes it easier for employees to engage with the company’s matching gift program, helping them further their commitment to giving back.

Wrapping Up & Next Steps

Small companies can significantly benefit from offering matching gift programs, both for employee engagement and for corporate social responsibility. While setting up a matching gift program may seem daunting at first, the process is more accessible than ever with the right tools and technology.

By selecting the right platform, clearly communicating the program to employees, and maintaining engagement, your company can make a meaningful impact on the causes you care about while fostering a culture of giving within your organization. Best of luck!

Drive matching gifts with the right software