Corporate giving can make a big difference for a nonprofit. Being the beneficiary of a corporate matching gift program can make a transformational difference.

The point is — companies who have matching gift programs don’t have to be huge but their impact can be.

Corporate matching gifts are a type of philanthropy in which companies financially match donations that their employees make to nonprofits, often doubling or tripling the gift’s impact. An estimated $2-$3 billion is donated through matching gift programs annually.

Companies can decide the match ratio or amount of money they will contribute in relation to the employee’s donation. For example, if the ratio is 1:1, the company will donate the exact same amount, which will double the donation, and so on.

Seems simple enough, right? Well, here are some startling statistics: An estimated $4-$7 billion in matching gift funds go unclaimed every year. That’s because 78% of match-eligible donors (employees) have no idea whether their company offers a matching gift program.

And just 7% of donors at companies with matching gift programs actually submit a matching gift request. That’s because many times these employees aren’t sure if they are eligible or don’t know how to submit requests. Why is this?

It comes down to lack of communication. Too often, the company’s matching gift program is only communicated when an employee starts with a company and then never again.

That’s why it’s important for companies to promote their matching gift programs to employees through meetings, websites, social media, email or text throughout the year during key giving times, i.e. Giving Tuesday, holidays. Another idea is to launch a limited time donation challenge.

Nonprofits would also be wise to promote matching gift programs — 84% of donors said they are more likely to donate once they know a match is offered. And one in three of those donors said they would give a larger gift if a match will be applied to their donation.

Nonprofits can promote matching gift programs by reaching out to their donors. This can begin by establishing a matching gift database and campaign that automatically asks donors to see if their companies participate in a matching gift program.

We know the benefits of a matching gift program to the receiving nonprofit are significant. However, what are the benefits to the company that has the matching gift program?

First, it can be an easy way for companies to distribute their giving revenue to a wider range of nonprofit organizations. Matching gift programs can also enhance a company’s brand reputation, as well as increase customer and employee loyalty.

Employees might feel more engaged and more empowered to give and volunteer. In terms of recruiting, many prospective employees are now looking for companies with a philanthropic mindset.

When companies establish a matching gift program, it demonstrates they have a dedicated commitment to the greater good, their community and their employees.

Employees who donate through a corporate matching gift program also benefit from knowing their gifts are significantly more effective. They know they have a voice in how the company gives back.

More than 26 million individuals work for companies with matching gift programs, including 65% of Fortune 500 companies. Donors can take a look at a list of top national companies who have a matching gift program at 360matchpro.com to see if their company is on the list.

They can also ask their company’s HR department or check their company’s website to see if it has a program. Taking this simple step can make a huge difference in many lives.

The Community Foundation of Anne Arundel County (CFAAC) works with many businesses to establish Corporate Advised Funds and can help companies explore creative ways to expand their impact in the community such as matching gifts.

Just contact us atinfo@cfaac.org or call us at 410.280.1102. If a current or new CFAAC Donor Advised Fund holder works for a company with a matching gift program, their fund is also eligible to receive the match when they contribute to their fund.

Many charitable gifts are eligible for a matching gift from employers and if your company has a Corporate Advised Fund at CFAAC, you can make a direct donation to your company’s fund at cfaac.org/corporate-advised-funds or encourage your company to set up a fund at CFAAC.

Overall, corporate matching programs are a win-win-win for nonprofits, companies and donors. Learn more at cfaac.org.

Mary Spencer is president and CEO of the Community Foundation of Anne Arundel County. The CFAAC is a tax-exempt, 501(c)(3), publicly supported philanthropic organization with the long-term goal of building permanent funds that provide support to local nonprofit organizations through grants and special projects. Our mission is to inspire and promote giving in Anne Arundel County by connecting people who care with causes that matter. Established in 1998, CFAAC is one of the largest funders of nonprofit organizations in Anne Arundel County. CFAAC distributes $4 to $6 million annually.

This story was originally printed in the July 8, 2023 edition of the CAPITAL GAZETTE.