Are Corporate Matching Gifts typically classified as restricted or unrestricted funds from a nonprofit accounting perspective?
This article explains Double the Donation's recommendation for how to classify corporate matching gift funds.
We Energies:
Caterpillar:
CMS Energy:
Nationwide:
Lenovo:
Double the Donation is not an accounting firm or law firm. We provide the following for educational and informational purposes, but you should confirm the following with your nonprofit's accountant.
In general, corporate matches are donations from a corporation to a nonprofit organization that the corporation's employees choose to support. It's our understanding that because it's a donation from the corporation, it should be treated as a standard donation from a corporation. If the default gift to your organization is an "Unrestricted" gift, then the gift from the corporation would be an "Unrestricted" gift unless the corporation says otherwise for their gift.
This aligns with what we typically see in a wide range of corporate matching gift program guidelines. For example, here's wording from a few corporations which is pretty typical, though we have seen other policies:
We Energies:
The foundation matches gifts to recipient organizations with a cash payment of equal value within the provisions described below. Although gifts may be specified for particular purposes, foundation-matching gifts are unrestricted.
Caterpillar:
If your donation was made for a specific purpose (such as a specific program, department, etc.) you may indicate that when you register for matching. Please note, however, that the Caterpillar Foundation’s matching payments are unrestricted. To inquire or ensure how the match is used, you may follow up directly with the nonprofit.
CMS Energy:
Eligible donors may make unrestricted gifts or they may designate their gifts for special projects. Matching gifts provided by the Foundation will be unrestricted.
Nationwide:
Gifts from eligible donors may be designated for a specific use, but the Foundation’s matching gifts will be unrestricted for educational purposes.
Lenovo:
Donors may separately designate their gifts for restricted purposes; however, Lenovo's Matching Gifts are unrestricted to institutional use.
