Matching Gift Essentials FAQ: How Nonprofits Can Maximize Corporate Revenue

-

Billions of dollars in corporate philanthropy funds go unclaimed annually simply because donors are unaware that they are eligible to participate in workplace giving programs offered through their employer. For nonprofits seeking to scale their revenue without exhausting their donor base, matching gifts represent one of the most efficient growth strategies available.

In this guide, we will define how these workplace giving programs function, identify common barriers to entry, and explore how fundraising software can automate the discovery process to ensure you never miss a match.

1. What are matching gifts and how do they work?

Matching gifts are corporate donations triggered when an employee donates to a nonprofit. Employers match the donation at a fixed ratio, often 1:1. Some companies match up to $10,000 per employee per year. This effectively doubles or triples donor impact. Your nonprofit can encourage supporters to check eligibility using tools and corporate giving databases like Double the Donation. By highlighting matching opportunities, you can increase donor engagement and maximize matching gift revenue.

2. Which types of companies offer matching gift programs?

It is a common misconception that only massive, global conglomerates match donations. The reality is that companies of all sizes (from local startups and regional firms to Fortune 500 industry leaders) offer matching gift programs to engage their employees.

While it is true that 65% of Fortune 500 companies (like Microsoft, Google, and Coca-Cola) offer these benefits, thousands of small and medium-sized businesses (SMBs) are increasingly adopting workplace giving programs to stay competitive in recruiting and to build company culture.

Here is how the landscape breaks down for your fundraising team:

  • Major corporations: Typically have formal, automated programs with high match limits (sometimes up to $10,000 or more per year) and standardized ratios, such as the 1:1 or 2:1 matches seen in top matching gift companies.
  • Mid-sized companies and regional firms: Often use matching gifts to deepen ties with the local communities where they operate. Their guidelines might be more flexible or focused on specific local causes.
  • Startups and small businesses: Many modern startups build philanthropy into their DNA early on. While they might not have a complex CSR portal, they often match gifts via manual submission or payroll deductions.

For a nonprofit, this means you should not limit your prospect research to just donors working for “household names.” By using a comprehensive corporate giving database, you can identify eligible donors working for obscure LLCs or regional banks just as easily as those working for major tech giants.

3. How much revenue can nonprofits generate from matching gifts?

The exact revenue depends on your specific donor base and their employment sectors. While many nonprofits see 5-10% of donations match-eligible, medium and large nonprofits benefit most due to higher donor bases and corporate relationships.

In any case, research shows that the potential for growth is immense and largely untapped. According to industry statistics gathered by Double the Donation, an estimated $4 to $7 billion in matching gift funds goes unclaimed annually. This gap exists primarily because donors are unaware of their eligibility, not because companies are unwilling to pay.

For a medium-to-large nonprofit, closing this gap can result in a significant revenue increase, not just from the corporate checks, but from the boost in individual giving that accompanies them. Double the Donation’s research highlights two critical revenue drivers:

  • Increased conversion rates: 84% of donors are more likely to donate if a match is offered.
  • Larger gift sizes: 1 in 3 donors indicate they would give a larger gift if matching is applied.

Therefore, the revenue question isn’t just about collecting a $100 check to match a $100 donation, but about leveraging that match to inspire the donor to give $150 in the first place.

To capture this revenue, your nonprofit must move beyond manual tracking. By integrating a fundraising tool that automates the process of identifying eligible donors, you can connect supporters to their company-specific next steps immediately, ensuring you claim your share of that $4-7 billion.

65% of Fortune 500 companies offer matching gift programs.
65% of Fortune 500 companies offer matching gift programs. (Source: Double the Donation)

4. How do matching gifts differ from volunteer grants?

Matching gifts are triggered by employee donations, while volunteer grants are triggered by volunteer hours.

Many companies and employers offer both programs and other corporate giving opportunities like payroll giving. Your nonprofit can encourage donors to take advantage of each of these opportunities to see maximum revenue growth. A workplace giving software for nonprofits can help your supporters discover eligibility for matching gifts and volunteer grants seamlessly, maximizing corporate giving revenue.

5. What challenges do nonprofits face with matching gifts?

Despite the high ROI of matching gifts, most organizations struggle to capture the full potential revenue due to three primary operational barriers:

  • Low donor awareness: The single biggest hurdle is an information gap. According to industry statistics gathered by Double the Donation, 78% of match-eligible donors have no idea that their company offers a matching gift program. If the donor doesn’t know the benefit exists, they cannot ask for it.
  • Incomplete employer data: Many nonprofits lack employment data for the vast majority of their supporters. Because employer fields are often optional on donation forms, donors frequently skip them. Without knowing where your supporters work, it is impossible to connect them to their specific eligibility requirements or next steps. Employer data is a key piece of fundraising intelligence and an important part of a donor profile, so taking a proactive approach to collecting this info can unlock more revenue streams for your organization.
  • Missed submission deadlines: Even when donors are aware, friction often gets in the way. Donors miss deadlines (which can range from 30 days to one year) simply because they forget to submit their request after the initial transaction or find the corporate login process too complicated to navigate without guidance.

Using a fundraising software that is specifically designed to help nonprofits grow workplace giving revenue can help bridge these gaps. Tools like Double the Donation integrate directly into your donation forms and confirmation screens to promote matching gifts at the peak moment of engagement to immediately inform donors of their opportunity. The software helps you collect employer details during the transaction and instantly transforms that data into actionable workplace giving insights regarding ratios, limits, and eligibility. Instead of relying on a donor’s memory, the system triggers automated email streams that deliver direct links to the donor’s specific corporate submission portal. It then sends timely reminders to ensure the request is completed before the window closes.

6. How do nonprofits know if a donor is eligible for matching gifts?

You can also highlight program details during the donation flow encourages submissions. This simplifies the process for donors, helping increase match revenue.

Eligibility is determined by the specific corporate social responsibility (CSR) policies of the donor’s employer, including factors like minimum donation amounts, employee status (full-time vs. retired), and the company’s match ratio.

While donors can manually check their own eligibility through internal HR portals, this places a heavy burden on the supporter. To streamline this, nonprofits can embed a matching gift search tool directly into their fundraising process.

A common concern for development teams is “donor friction,” or the fear that asking too many questions will cause a donor to abandon their gift. Leading software solutions like Double the Donation solve this by splitting the process into two distinct, low-friction steps:

  • Pre-conversion (data collection): During the donation flow, the donor simply types their company name into an autocomplete search field. This takes mere seconds and does not interrupt the checkout process.
  • Post-conversion (next steps): The specific eligibility details (such as match ratios, deadlines, and direct links to the corporate submission portal) are displayed only after the donation is successfully processed.

This workflow ensures that your organization secures the initial donation first, without distraction. Then, immediately on the confirmation screen, the donor is presented with the specific guidelines they need to double their impact.

7. How long do donors have to submit matching gift requests?

Deadlines vary by employer, typically ranging from 30 to 90 days post-donation.

Some programs allow up to a year for submission. Your nonprofit can remind donors through a fundraising tool that automates emails and sends timely reminders to maximize match capture. Clear instructions reduce missed opportunities and improve donor satisfaction.

8. Are matching gifts tax-deductible for donors?

Donors may only claim deductions for their personal contributions, not employer matches, which are treated as corporate charitable donations. Your nonprofit should acknowledge both the donor and company for donor stewardship and transparency. To identify top supporters and employers, integrate a fundraising tool with a corporate giving database and insights.

Maximizing Corporate Revenue Through Matching Gifts

Capturing matching gift funds requires technical implementation and building a culture of awareness. By simplifying the process for supporters to check their matching gift eligibility and integrating these opportunities into your donor stewardship plans, you validate the donor’s contribution and multiply its impact.

We recommend reviewing your current donation confirmation email to ensure it includes a clear, direct invitation for donors to research their employer’s matching gift program.

To learn more about matching gift FAQ and other forms of workplace giving, explore more resources from Double the Donation and implement best practices, streamline processes, and capture more matching gifts today.