So you are contemplating creating a matching gift program? Where do you get started, and what are other small- medium businesses (SMB) doing? The good news is that you are not alone. In fact, according to a study completed by America’s Charities, 70% of companies offer matching gifts as a component of their volunteer and giving programs. At Good Done Great, we work with companies of all sizes, and we are frequently contacted by small businesses looking to learn how they measure up against their peers.
How Common is a Matching Gift program in the SMB Market?
While this number can vary greatly depending on company size and industry, the trend of workplace giving is here to stay. Your consumers and employees are demanding it. Fact: 91% of global consumers said they expect companies to have social and environmental goals. According to a Deloitte survey conducted last year, 70% of young Millennials, those ages 18 to 26, say a company’s commitment to the community has an influence on their decision to work there. Every day more small businesses are jumping in to workplace giving. It is time to join the masses.
What is a Typical Match Rate?
In our experience most SMB businesses that we work with are using a 1:1 match ratio. Sometimes this ratio will vary amongst different employee groups. For example, your company may offer a 1:1 match for full time employees, but offer less for your part time employees. Or, you might want to offer a higher match for employees after they hit their 5 year anniversary with your company, or to those who serve in a leadership role.
The important thing to keep in mind when determining your ratio is that your matching gift program is a benefit, and no matter what ratio you are able to start with, you are increasing your impact on the social good community.
How Does My Business Benefit from Matching Gift Programs?
Who doesn’t want a more elevated brand, better relationships with your local community and happier employees? These are just a few of the common benefits associated with a matching gift program, which we have dived in deeper in past posts here.
Other advantages to consider are how giving back can help small businesses in their public relations effort- especially if you do not have a large PR/media budget. You can share your good work through blog posts, press releases, and other social media channels. This is all good, but don’t forget that an effective workplace giving program is not about you. It is about supporting the causes your employees are passionate about.
Finally, when your company offers a matching gift program you will benefit from tax breaks. No matter the size of your program, you are able to deduct your matching gifts from your reported income. It is a win win for all!
What Do I Need to Consider When Building a Matching Gift Program?
There are many factors to consider when building a matching gift program, but in summary here are some key principles to keep in mind:
- Allow employee choice. It is ok to select causes that are eligible for your program, but giving is personal, so allow your employees to choose which specific non-profit they want to support.
- Keep it simple and social. Plan ahead for what infrastructure will keep the program engaging and easy to use.
- Make time to ensure your program is well run. Whether this means you appoint a program administrator or hire someone to manage the program, make sure it is a program that will not fall to the bottom of your priority list. It will take time and effort to nurture and grow your matching gift program. In the end, it will be worth it!
For more tips on getting started and running effective matching gift programs for the small business stayed tuned and sign up for more information at www.gooddonegreat.com . Sign up for our newsletter today!