Key Term

What is Donation Matching?

Definition

Donation matching is a philanthropic arrangement where an organization, typically an employer or foundation, pledges to match charitable contributions made by individuals at a predetermined ratio, such as dollar-for-dollar (1:1) or sometimes even double or triple the original donation amount. This means that when someone makes a qualifying charitable donation, the matching organization will contribute an equal or multiplied amount to the same cause.

Significance

Matching donations are a powerful tool in charitable giving because they effectively multiply the impact of individual contributions, making each donor's gift more valuable. This mechanism often motivates donors to give more generously since they know their contribution will have increased impact. For nonprofits, matching programs can serve as effective fundraising catalysts, helping them reach their goals more quickly and encouraging new donors to participate. Many employers use matching gift programs as part of their corporate social responsibility initiatives and employee benefits packages, which has made matching gifts a significant source of philanthropic funding, estimated to represent billions of dollars in annual charitable giving.