Matching funds

Matching funds are funds that are set to be paid in equal amount to funds available from other sources. Matching fund payments usually arise in situations of charity or public good. The terms cost sharing, in-kind, and matching can be used interchangeably but refer to different types of donations. Matching funds are funds that are set to be paid in equal amount to funds available from other sources. Matching fund payments usually arise in situations of charity or public good. The terms cost sharing, in-kind, and matching can be used interchangeably but refer to different types of donations. In philanthropic giving, foundations and corporations often give money to non-profit entities in the form of a matching gift. Corporate matches often take the form of employee matching gifts, which means that if an employee donates to a nonprofit, the employee's corporation will donate money to the same nonprofit according to a predetermined match ratio (usually 1:1). For foundations, matching gifts are in the form of grants made directly to nonprofits if that the nonprofit raises a set quantity of money before the grant is bestowed. The benefit of foundation matching grants is that they provide greater incentive leverage when a nonprofit is fundraising from its constituency. If a foundation approves a 1:1 matching grant, donors know that their dollars will be doubled. On the other side, foundations who give matching grants receive assurance of the nonprofit's capacity to raise adequate funds. For example, Dr. Booker T. Washington, a famous African-American educator, had a long-time friendship with millionaire industrialist Henry H. Rogers, who provided him with substantial amounts of money to be applied for the betterment and education of black Americans in the late 19th and early 20th centuries. Washington later wrote that Rogers had encouraged projects with at least partial matching funds so that two ends were accomplished: Using the matching funds philosophy, after Rogers's death, Julius Rosenwald and the Rosenwald Fund continued and expanded the work, eventually funding over 5,000 Rosenwald Schools between 1912 and 1932. During that time, over US$4.6 million additional dollars were contributed by blacks in the communities to respond to the challenge thus presented. In 1954, the General Electrics Foundation created the Corporate Alumni Program to match donations to the colleges and universities that employees graduated from. This eventually broadened to other charities. The foundation is one of the most generous with a $25,000 match per employee or retiree. Some companies facilitate the process, allowing employers to match the gifts of their employees. A matching gift, typically a one-time charitable gift made by an employee and matched by the employer, should not be confused with an employer matching program, which has to do with the employee's 401(k) plan and retirement. In 2014, corporations donated $17.8 Billion to nonprofit organizations. This is a 13.7% increase over 2013 corporate giving levels. In 2010, matching gifts represented ~20% of corporate cash donations. In 2016, over 65% of Fortune 500 companies offer an employee matching gift program. In the UK, the not-for-profit organisation, the Big Give, have used match funding to raise over £97m for thousands of different charitable projects. The match funding is provided by a network of philanthropists and funders, called 'Champions'. Research commissioned by the Big Give shows that more people give when donations are matched (84% of surveyed respondents said they would be more likely to give if donation was matched) and people give more (one in three donors said they would give more than they usually would if do).