Everyone loves to get something for free when they buy a particular item. Who wouldn’t love to get two candy bars from a vending machine rather than just one? Matching gifts work on a similar idea and allow nonprofits to get two donations for the price of one.
Matching gifts are one of the means of increasing the value of donations received by nonprofit organisations. However, they only work with the right strategy and marketing. This article will delve into why matching gifts are an important element of fundraising and some strategies for boosting an organization’s matching gift program.
Here are some reasons why matching gifts are an excellent means of raising funds.
Greater Revenue
Naturally, the most important reason for having a matching gifts program is that it increases the total amount of money raised. According to research from donorperfect, approximately 4 to 7 billion dollars goes unclaimed since employees fail to take the best advantage of corporate giving programs. This is primarily because donors are not aware of the matching gifts program by their employers.
It is important that nonprofits promote matching gift programs from corporates to their supporters. This allows your nonprofit to receive twice the donation, which can really add up over time.
Targeted Outreach
Understanding which donors are eligible for matching gift programs is a great way to segment your donor database. For instance, if you know one of your donors works for Company A that has a great matching gifts program, your nonprofit can send specialized messages and emails to them.
Segmenting your donor database is only possible by understanding which of your donors are eligible for the matching gift programs from some organizations. When you have zeroed in on the individuals who are eligible for matching gifts programs, you can target them via specialized emails and messages. By doing so, you can be assured of getting more funds, while having only targeted a single individual.
These individuals can then be sent follow-up emails to inform them that they are eligible for matching gifts. You can potentially identify the eligibility of these donors through their company email addresses.
No Cost Donation for Donors
In order to be eligible for a matching gift donation, donors are still required to make a donation in the first place. Once they do so, the corporate match is essentially a ‘no-cost’ donation. What this allows is for donors to be able to donate double the amount to a charity, while only having paid for the initial donation out of their pocket, donation revenue can be doubled, tripled, or increased manifold!
Another advantage is that it incentivizes your supporters to donate since they are able to make double the donation for the price of one!
Encourages More Donations
PhilantropyWorks cites that declaring a matching gift program increases the number of donations by 19%. Moreover, a matched gift increases the chance that an individual donates by about 22%.
In addition to the charity benefiting from the increased donation, the major donor also benefits. It helps keep donors engaged and involved. If the donors have a strong connection with the charity, the benefits of matching gifts is incredibly high.
Creates a Sense of Urgency
Another way matching gifts can encourage your supporters to donate is by creating a sense of urgency. Typically, matching gift campaigns are run a few times a year. Telling your donors to donate right away to double or triple their donations is incredibly effective since they will want to seize the opportunity.
Final Notes
Matching gifts are an excellent way for nonprofits to raise more funds. They encourage your donors to donate more and help you receive larger donations that can be directed towards charitable causes.
Be sure to increase your donor awareness regarding matching gift programs, since donors are unlikely to know about such programs that increase their donations. Before you know it, your nonprofit organization will begin to receive large donations.