Unlocking $500K in Matching Gifts: Corporate Philanthropy Strategy

Unlocking $500K in Matching Gifts: Corporate Philanthropy Strategy

Executive Summary

A prominent local nonprofit dedicated to early childhood education faced significant challenges in maximizing its fundraising potential, particularly from corporate matching gift programs. Legacy Bridge Advisors partnered with the organization to develop and implement a comprehensive corporate philanthropy strategy. This strategy focused on identifying eligible companies, educating employees about matching gift opportunities, and streamlining the submission process. As a result, the nonprofit successfully unlocked $500,000 in previously untapped matching gifts, significantly boosting its funding and enabling expanded program reach.

The Challenge

The nonprofit, "Bright Beginnings Learning Center," had been serving underprivileged children in the community for over a decade. While they had a dedicated individual donor base and secured several grants, they consistently struggled to reach their annual fundraising goals. In the fiscal year ending 2023, Bright Beginnings aimed to raise $2 million to expand its after-school programs and increase scholarships. However, despite robust individual giving campaigns netting $1.3 million, they fell short by $700,000.

A key contributing factor was the organization's failure to capitalize on corporate matching gift programs. An internal audit revealed that less than 5% of eligible donors actually submitted requests for matching gifts, leaving significant funds on the table. Further analysis indicated that:

• Lack of Awareness: Most donors were unaware that their employers offered matching gift programs. A survey of past donors revealed that 72% were unfamiliar with the concept of corporate matching.
• Complex Submission Process: The matching gift submission process was perceived as cumbersome and time-consuming. Many donors abandoned the process midway due to complex forms and lengthy approval timelines.
• Missed Opportunities: Bright Beginnings did not actively promote matching gift opportunities in its fundraising appeals or communication materials. They relied solely on a brief mention on their website, which was largely ineffective.
• Untapped Corporate Relationships: The organization had limited relationships with local businesses and lacked a structured approach to identifying potential corporate partners. While some employees of local companies donated, there was no coordinated effort to solicit corporate sponsorships or matching gifts.

This inefficient approach resulted in an estimated $200,000 to $300,000 in potential matching gifts going unclaimed annually. This financial deficit directly impacted Bright Beginnings' ability to expand its services and provide crucial educational resources to more children in need. The shortfall threatened the sustainability of existing programs and hampered future growth.

The Approach

Legacy Bridge Advisors adopted a multi-faceted approach to address the challenges and unlock the potential of corporate matching gifts for Bright Beginnings Learning Center. This strategy involved four key phases:

Phase 1: Corporate Partner Identification and Assessment

• Database Analysis: Leveraged the Double the Donation database to identify local companies with established matching gift programs and assess the potential value of these programs. This analysis considered factors like match ratio (e.g., 1:1, 2:1), maximum match amount per employee, and employee eligibility criteria.
• Geographic Targeting: Focused on companies within a 25-mile radius of Bright Beginnings' location to maximize local impact and foster stronger community relationships.
• Industry Alignment: Prioritized companies in industries with a strong history of corporate social responsibility and philanthropic giving, such as technology, finance, and healthcare.
• Relationship Mapping: Identified existing relationships between Bright Beginnings' board members, staff, and donors with potential corporate partners. This helped to identify warm introductions and leverage existing networks.

Phase 2: Employee Engagement and Education

• Targeted Communication: Developed targeted marketing materials to educate employees of identified corporate partners about matching gift opportunities. This included email campaigns, flyers, and social media posts highlighting the benefits of matching gifts and the impact of Bright Beginnings' programs.
• Simplified Submission Process: Created a dedicated landing page on the Bright Beginnings website with clear instructions on how to submit matching gift requests. This page included direct links to the online matching gift portals of key corporate partners.
• Lunch & Learn Sessions: Organized "Lunch & Learn" sessions at participating companies to provide employees with a comprehensive overview of matching gift programs and answer their questions in person. These sessions emphasized the ease and impact of participating.
• Internal Champions: Identified and trained "matching gift champions" within each company to promote the program and assist colleagues with the submission process.

Phase 3: Streamlined Matching Gift Process

• Automated Tracking: Implemented a system to automatically track matching gift requests and monitor the approval process. This allowed Bright Beginnings to proactively follow up with donors and companies to ensure timely processing.
• Dedicated Point of Contact: Appointed a dedicated staff member to serve as the primary point of contact for matching gift inquiries. This individual was responsible for answering questions, resolving issues, and coordinating with corporate partners.
• Acknowledgment and Appreciation: Developed a system to promptly acknowledge and thank both donors and companies for their matching gift contributions. This demonstrated appreciation and fostered ongoing engagement.

Phase 4: Ongoing Program Optimization

• Data Analysis and Reporting: Regularly analyzed matching gift data to identify trends, track program performance, and identify areas for improvement.
• Corporate Partner Relationship Management: Maintained ongoing communication with corporate partners to strengthen relationships and explore opportunities for expanded collaboration, such as sponsorships and volunteer programs.
• Program Promotion: Continuously promoted matching gift opportunities in all fundraising appeals, newsletters, and website content. This ensured that the program remained top-of-mind for donors.

Technical Implementation

The successful implementation of the corporate philanthropy strategy relied on several key technical tools and processes:

• Double the Donation Integration: The primary tool was the integration of the Double the Donation database with Bright Beginnings' existing donor management system (Salesforce). This integration allowed the organization to automatically identify matching gift opportunities for each donation and personalize communication accordingly.
• Custom Landing Page Development: A dedicated landing page was created on the Bright Beginnings website (using WordPress) that provided a user-friendly interface for donors to access information about matching gift programs. The landing page included:
  • A searchable database of companies with matching gift programs, powered by Double the Donation.
  • Step-by-step instructions on how to submit a matching gift request.
  • Direct links to the online matching gift portals of key corporate partners.
  • Frequently Asked Questions (FAQs) about matching gift programs.
• Email Marketing Automation: Mailchimp was used to automate email campaigns targeted at employees of identified corporate partners. These campaigns included:
  • Welcome emails introducing the matching gift program and highlighting its benefits.
  • Reminders to submit matching gift requests after making a donation.
  • Personalized thank-you emails acknowledging matching gift contributions.
• Salesforce Integration: The integration with Salesforce enabled the tracking of all matching gift requests, from initial submission to final approval. This provided real-time visibility into the program's performance and allowed for proactive follow-up. Custom reports were created to track key metrics such as:
  • Number of matching gift requests submitted.
  • Dollar value of matching gift requests submitted.
  • Percentage of matching gift requests approved.
  • Average processing time for matching gift requests.
• Security Compliance: All systems and processes were implemented in compliance with relevant data privacy regulations, including GDPR and CCPA.

The team also calculated the potential return on investment (ROI) of the program. The formula used was:

ROI = (Total Matching Gifts Received - Program Costs) / Program Costs * 100

Program costs included expenses related to Double the Donation subscription, website development, email marketing, staff time, and promotional materials.

Results & ROI

The implementation of the corporate philanthropy strategy yielded significant results for Bright Beginnings Learning Center:

• Matching Gift Revenue: In the first year following implementation, Bright Beginnings successfully unlocked $500,000 in matching gifts, a substantial increase compared to the previous year's $80,000. This represents a 525% increase in matching gift revenue.
• Donor Participation Rate: The percentage of eligible donors submitting matching gift requests increased from 5% to 35%, demonstrating a significant improvement in donor engagement.
• Corporate Partnerships: The organization established formal partnerships with 15 local companies, resulting in increased corporate sponsorships and volunteer support.
• Expanded Programs: The additional funding enabled Bright Beginnings to expand its after-school programs to serve an additional 50 children and increase scholarship funding by 20%.
• ROI: The program generated a significant return on investment (ROI). Total program costs were estimated at $50,000 (including subscription fees, marketing materials, and staff time). Therefore, the ROI was calculated as follows:

ROI = ($500,000 - $50,000) / $50,000 * 100 = 900%

This demonstrates a highly successful and impactful corporate philanthropy strategy.

Key Takeaways

For other RIAs and wealth managers looking to advise their non-profit clients on maximizing corporate philanthropy, these are the key takeaways:

1. Data is Key: Leverage databases like Double the Donation to identify matching gift opportunities and track program performance. This data-driven approach allows for targeted outreach and informed decision-making.
2. Simplify the Process: Make it easy for donors and employees to submit matching gift requests by providing clear instructions, direct links to corporate portals, and dedicated support. Streamlining the process increases participation rates.
3. Educate and Engage: Actively educate donors and employees about matching gift programs through targeted communication, lunch & learn sessions, and internal champions. Awareness is crucial for driving participation.
4. Build Corporate Relationships: Develop strong relationships with local businesses to foster corporate sponsorships and volunteer support. Building these relationships can lead to long-term partnerships and increased funding.
5. Track and Optimize: Continuously track program performance, analyze data, and identify areas for improvement. Regularly promote matching gift opportunities to ensure the program remains top-of-mind for donors.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify philanthropic opportunities and personalize giving strategies for their clients, maximizing both charitable impact and financial benefits. Visit our tools to see how we can help your practice.