Have you ever ever questioned how a lot cash goes unclaimed via matching present applications annually?
At Double the Donation we’ve spoken with numerous nonprofits, companies, foundations, and analysis establishments and are sometimes requested:
- How a lot cash is donated via worker matching present applications?
- How a lot cash is being left on the desk as a consequence of a lack of expertise amongst eligible staff?
The primary query of how a lot cash is donated yearly via matching present applications might be estimated based mostly on publicly reported statistics from company foundations. As an example,
Microsoft
So the place do you even start?
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THE ANSWER IS AT THE BOTTOM OF THE POST
Primarily based on analysis courting again between 2010-2014 and the next 5 strategies of calculating matching present potential we consider there’s $6-10 billion in unclaimed matching present potential.
That’s proper! $10+ BILLION in unclaimed matching present {dollars} annually!
To reach at this quantity we mixed a
Methodology #1 – What if each worker maxed out his or her match eligible contributions?
A superb place to start out is to ask what would occur if each worker who labored for an organization with an identical present program maxed out his or her charitable giving and requested an identical present.
Greatest Estimate utilizing this Methodology: $XXXXXX
Our confidence stage on this methodology: Extraordinarily Low
Our course of for figuring out this determine:
- Establish which corporations supply matching present applications and the utmost quantities matched per worker at every firm (as a part of our core companies we already keep a database of matching present corporations so this half was simple)
- Decide the variety of US based mostly staff at every of those corporations (
- Assume every worker maxed out his or her charitable contributions to organizations which fell throughout the firm’s pointers and submitted the matches
- Calculate the entire quantity of matching present potential
For instance, let’s look the businesses highlighted on our checklist of high 10 matching present corporations.
<INSERT IMAGE – IN PICTURES (THEORETICAL MAX)
Collectively these 10 comp
Recognized flaws on this methodology and our course of:
Whereas the above steps could appear simple there have been quite a lot of challenges for our workforce. Particularly:
- Figuring out the variety of US staff for each firm in our database wasn’t available so we used international figures
- Corporations present completely different maximums for various staff. As an example State Avenue Capital matches between $5,000 and $35,000 yearly per worker relying on an worker’s job stage. We used the utmost.
- Most significantly, many staff don’t have the monetary capacity to donate as much as the company maximums.
Methodology #2 – Total Company Income and Historic Giving Charges
Within the 2013 Giving USA report, XXXXX breaks down charitable giving as a proportion of company income
Why this methodology may work:
Flaws:
Total Double the Donation’s workforce agrees that
Methodology #3 – Extrapolate based mostly on worker participation charge
If given the selection most corporations would direct their philanthropic giving via worker giving applications because it’s an efficient method to help organizations which the corporate’s staff help. The problem for a lot of corporations is how one can increase consciousness of those applications.
It ought to come as no shock that communications about worker giving applications are sometimes in competitors with vital enterprise updates about core priorities. Whereas there are just a few corporations resembling Microsoft which do an amazing job with their matching present communication technique at many firm’s they’re restricted to a paragraph within the 50 web page worker profit e book and a sinlge e,ail throughout the vacation season. Thus it’s no shock that worker participation charges fluctuate extensively by firm and are sometimes very low
Pattern worker participation charges
Learn extra about worker participation charges >
Clearly 100% p.c participation is just too excessive as not everybody donates to nonprofits. Nevertheless it’s cheap to anticipate that corporations throughout the identical trade may have comparable worker participation charges.
For instance, each Financial institution of America and American Specific match worker donations to just about all 501c3 organizations but there are substantial variations in worker participation charges with one survey indicating that 16% of Financial institution of America staff take part within the firm’s matching present program whereas 70% of American Specific staff participated.
Equally within the pharmaceutical area 30% of Pfizer staff submitted matching present requests whereas solely 13% of Bristol-Myers Squibb staff submitted matches.
Why this methodology may work:
It’s essential to notice that worker participation charges aren’t all the time indicative of an organization’s total charitable giving. As an example Goal doesn’t supply an identical present program however donates 5% of its pre-tax earnings to nonprofits. However with corporations being more and more conscious of the worth of c there’s room for development in lots of corporations’ matching present applications.
Flaws:
Confidence stage:
Methodology #4 – See what different individuals declare
Whereas we’re we not oblivious to the truth that . Many research say that whereas particular person guesses could also be off the collective knowledge of a gaggle is extraordinarily correct.
The most typical quantity that’s floated across the web and improvement communities is that 10% of staff are eligible to have their donations matched.
- In a weblog article GreatNonprofits talked about $10 billion in matching present income goes unclaimed, however didn’t present any justification for that determine.
‘ve seen
Methodology #5: Extrapolate based mostly on recognized matching present potential at choose nonprofits.
At Double the Donation we’re greatest recognized for our worker matching present lookup widget however we offer a variety of companies tailor-made to the biggest nonprofits within the nation.
As an example, we offer complete matching present companies for giant nationwide nonprofits. These embrace:
- Matching present look-up instruments
- Bulk screenings on information which nonprofits have employer knowledge for
- Employer append companies the place we take a corporation’s checklist of donors and decide the place these donors work. We then display this new employer knowledge to establish extra matching present eligible donors.
- Administrative help
Why’s the above data related for estimates of matching present funds which can be going unclaimed?
Nicely once we take a corporation’s total database of donors and append employer knowledge to these information after which display all the employer knowledge in opposition to our database of matching present corporations we’re in a position to establish for a single group all of its matching present potential. For instance, let’s say a big group raised on common $100,000 from matching items throughout its final three fiscal years. After we work with them we’re in a position to display their total database of present donors and establish the group’s full matching present potential.
We’re very assured within the matching present potential evaluation that we carry out for every of our purchasers however there’s nonetheless uncertainty round our capacity to extrapolate this throughout the complete nonprofit sector.
If we have a look at knowledge from all our clients and assume comparable charges throughout all nonprofits we will get an estimate of matching present potential of XXXXX.
Greatest Guess utilizing Methodology #4 – $6 Billion in unclaimed worker matching items
Methodology #4 – Whole Particular person Donations * Share of Inhabitants Eligible
GivingUSA, one of many premier analysis establishments XXXXX has been compiling knowledge on philanthropic giving since XXXX (YEAR). In 2013 GivingUSA reported that whole philanthropic giving
Microsoft –
Ameriprise – $3.6 Million
Verizon
Normal Electrical
