Around April, I start nagging my clients. “Hey, Boo, let’s start working on that match for year-end. And let’s make it big and juicy!” Around here we refer to the match offers as “pixie dust” because they have a sprinkle of magic, lifting response rates, and average gifts.
Those on the inside of fundraising sausage-making may scoff. Does anyone actually still buy into this match offer? Is it smoke and mirrors?
Matches work. It is perhaps the most universally applicable technique across all causes. But don’t take my word for it. Loads of studies out there. A few stats to chew on, announcing a match increases revenue per solicitation by 19% and the probability of giving by 22%. Match or challenge gift brings in 23% more donors, revenue increases by 18% in a head-to-head test.
Matches offer a trifecta for impactful fundraising: a sense of urgency driven by a deadline, a goal that donor is helping their cause reach, and a special offer deal. That last one, a special offer, is something consumers, conditioned by online retailers, have come to expect, especially at the end of the year. It feels good to get an altruistic bargain, dollars given make even more of an impact, you contribute $50 but should feel good about making $100 worth of a difference. And no one wants to miss out on the match, loss aversion is real.
There are different types of matching fund offers that can be used to reach fundraising goals, but I have not seen them catalogued. Much like naturalists observing and documenting sightings of rare birds, this document outlines different types. A behavioral psychologist could probably tell us which match would appeal to which personality types.
1. Basic, Garden Variety Match. The simplest and most common of the matches, 1:1, every $1 is matched with an additional $1. This match is straightforward and can be applied in most types of campaigns. One reminder is to keep the amount reasonable. The amount should not be so enormous that it feels out of reach, and not so small that it feels contrived, find the amount that’s just right, Goldilocks.
2. Multiples Match. This is where things get spicy. Every dollar is matched twice or maybe five times or ten. Suddenly your $50 gift becomes $250 and makes a greater difference. I’ve seen sources claiming both that increasing match makes little difference and ones that claim it to be helpful. Multiple matches, IMHO, can be very useful in presenting something that’s extra special (cue a special Giving Tuesday match increase!).
3. Stretch Match. This offer matches gifts but only over a certain amount. For example, all donations over $250 will be matched, dollar for dollar. How great is that for upgrading your on-the-cusp donors?
4. Flat Match. This is more of an incentive than a match. The offer is for every donation or conversion, charity receives an extra gift. This match can be very successful for a sustainer conversion campaign, for every sustainer that commits to the organization, a generous donor will reward the organization with an additional $100.
5. Partial Match. With this challenge, donations are matched, but not in full. Only the first $100 of the contribution or the first monthly donation. There may be good reasons for using this offer, but it can also be confusing to a donor, which is perhaps why we do not often see this approach to the match.
6. Flash Match. Like a doorbuster sale, super-quick and super-urgent. Only on for 48 hours, no time to wait. For hot fundraising times, say year-end, bigger matches are preferable, but these quick matches are great to spice things up during a long campaign, ratchet up the excitement, or when you don’t have a whole lot else happening and need an urgent moment.
7. Employer Match. Many employers will match employees’ charitable donations. But few employees take advantage of this opportunity to secure more dollars for the causes they love. What’s great about employer match, most legitimate nonprofits have an opportunity to secure very real additional money when their constituents donate and take the step to apply for a qualifying match. The only downside is the challenge of educating and spurring donors to take this additional step. No matter how simple you make it, it still feels like extra paperwork.
8. All or Nothing Match. This match is a challenge. Presented as when the charity hits its goal, it will receive a pot of gold in the end. Individual donations paving the road to the total are not matched until the total is reached. This approach feels a little different than a typical match and creates a sense of teamwork, although it takes away some of the immediate satisfaction of knowing that contribution doubled (or tripled or quadrupled).
9. Match Fund (Sketchy Match). These are 3rd party matches with multiple charities promoting giving in hopes of qualifying for a share of the total fund. Sometimes these monies are distributed in different ways as a percentage of total funds raised (i.e. you raise 0.3% of the total and you receive 0.3% of the total match fund) – seemingly more fair, but translates to very little actual extra dollars. Another approach is first come, first serve, matching donations until the matching fund runs out, essentially pitting organizations to urge their donors to give as early as possible.
What match type is your favorite? Are there any that are missing from this list? Now, let’s raise some money for year-end campaigns.
Sources:
1. “Small Matches and Charitable Giving: Evidence from a Natural Field Experiment”:: 2010, Journal of Public Economics, Dean Karlan, John List, Eldar Shafir
2. “Matching and Challenge Gifts to Charity: Evidence From Laboratory and Natural Field Experiments”: 2008, Experimental Economics, Daniel Rondeau, John List
3. “Boost Your Fundraising Results With a Match From a Major Donor” 2019, https://www.thebalancesmb.com/ Joanne Fritz
Hello! That was a great article. Good information posted here. I will pass this information along to some interested friends. Thanks very much!
Concise and impactful. Your writing gets straight to the point.