Basic Framework for a Compliant Company Charitable Match Program

Tis the Season??and donation matching programs are an awesome way for companies to show they care, support employee generosity, and make a bigger impact in the community. But to make sure these programs are trustworthy and compliant, you need a solid due diligence process. Here’s how to set one up:

1. Know Why You’re Doing This

First things first—why does your company want a donation match program? Is it to:

• Back causes that align with your values?
• Boost employee morale and engagement?
• Enhance your company’s reputation?

Whatever the reasons, having clear goals will help you make better decisions along the way.

2. Decide Who’s Eligible

Not every organization will be a good fit. Here’s what to think about:

• Do They Align with Your Values? Their mission should reflect what your company stands for.
• Where Do They Operate? Decide if you’ll support local, national, or international organizations.
• What’s Out of Bounds? Be upfront about exclusions, like hate groups or any organization with discriminatory practices.

3. Set Up a Review Process

Create a system to vet organizations. Here’s how it might look:

• Quick Check: Confirm they’re a registered nonprofit using the IRS search tool.
• Dig Deeper: Look at their mission, programs, and outcomes to make sure they’re making a difference.
• Reputation Matters: Check reviews, social media, media coverage, or ratings from sites like Charity Navigator .
• Follow the Money: Make sure their financials are transparent and align with your audit requirements.

Pro tip: Use digital tools like Benevity , Bonterra , or YourCause from Blackbaud to streamline this process and ensure consistency.

4. Be Clear About the Rules

Make it easy for employees to understand how the program works. Spell out:

• Match Limits: Set caps for individual employees and the company’s total contribution.
• Matching Ratio: Will it be dollar-for-dollar, or something else?
• What Counts: Define the types of donations that qualify—cash, in-kind gifts, etc.

Pro tip: Have a written policy. Transparency builds trust and avoids confusion.

5. Keep Tabs on Things

Once the program is up and running, keep an eye on how it’s performing:

• Track Donations: Monitor total contributions and matches.
• Ask for Feedback: Find out what employees think about the program.
• Share the Impact: Highlight success stories and metrics to show how it’s making a difference.
• Be Audit-Ready: Keep detailed records and reports to make life easier during internal and external audits.

6. Watch for Risks

Make sure the program stays on the right track:

• Prevent Fraud: Verify employee donations and nonprofit legitimacy.
• Avoid Conflicts: Ensure donations don’t create personal or corporate conflicts of interest.
• Stay Legal: Keep up with laws and regulations about corporate giving.
• Compliance: Include controls like accurate reporting and separation of duties to meet compliance standards.

7. Get Employees Involved

This program is about them, after all. Here’s how to keep them engaged:

• Let Them Nominate: Allow employees to suggest organizations for the program.
• Make It Easy: Provide resources and clear instructions for participating.
• Celebrate Generosity: Acknowledge employee contributions in internal emails, social media or company events.

8. Keep Improving

Things change, so your program should too. Regularly:

• Review participation data and impact.
• Adjust rules to match company growth or new priorities.
• Gather feedback from employees and nonprofits.
• Schedule regular audits to ensure compliance and spot areas for improvement.

Wrapping It Up

A great due diligence process ensures your donation match program is impactful, compliant, and aligned with your company’s values. When done right, it builds trust, inspires employees, and supports meaningful causes. Ready to get started? Time to put that framework in place and make a difference!