How Do Corporate Matches Work?
By Linda Beardsley
Financial Advisor, Aspen Wealth Management, Inc.
303-261-8014
There are many ways to give to your favorite nonprofit organization including corporate matching gifts, donor-advised funds, and wealth transfer strategies.
The one I will focus on is the corporate matching gift. This is where your employer offers to match your charitable donation. If you have and use the employer match you may be able to potentially double or triple the impact of your contributions to the nonprofit organization. In addition, you are ensuring you are not leaving money on the table that can go to your favorite nonprofit organization. Often the allowable match amount is for each calendar year, so it’s a good time of year to confirm if you have any employer match still available that can be used by the end of year.
A few things to keep in mind. Make sure you understand the criteria around receiving the match. You should be able to learn about the program either on your internal company website or your HR department. You will want to confirm that your company will match the donation to the nonprofit organization you have selected. There is usually a portal to confirm if your nonprofit organization is eligible to receive a match. Then follow the steps outlined to ensure your nonprofit organization will receive the match. Below is example of a common process that is used and usually is quick to complete:
Employee Donation: An employee donates to a nonprofit organization of their choice.
Request for Match: The employee submits a request to their employer to match the donation, often through a specific form or online portal.
Employer Contribution: The employer reviews the request and, if approved, makes a matching donation to the same charity.
When you use your employers company match, donations are increased, as matching gifts can significantly boost the total funds raised for the nonprofit organization. These programs enhance employee morale and satisfaction by promoting a culture of giving. Both the employee and employer may receive tax deductions for their contributions. This is an easy and great way to give and increase your giving to your favorite nonprofit organization.
Any opinions are those of Linda Beardsley and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Aspen Wealth Management is not a registered broker/dealer and is independent of Raymond James Financial Services.