Key Term

What is Matching Gift?

Definition

A matching gift is a charitable donation made by an employer that matches an employee's contribution to an eligible nonprofit organization, usually at a 1:1 ratio, though some companies offer higher or lower ratios. This corporate giving program essentially doubles (or multiplies) the impact of an employee's original donation when the employer matches the contribution.

Significance

Matching gift programs represent one of the most powerful yet underutilized forms of charitable giving, with billions of dollars in matching gift funds going unclaimed each year. These programs are significant because they can dramatically increase the impact of individual donations without additional cost to the donor, while also encouraging employee charitable giving and strengthening the relationship between corporations and their communities. For nonprofits, educating donors about matching gift opportunities and implementing efficient matching gift processes can substantially increase their fundraising revenue and help them better achieve their charitable missions.