Are Corporate Matching Gifts typically classified as restricted or unrestricted funds from a nonprofit accounting perspective?

This article provides guidelines on how corporate matching gifts are generally classified and offers Double the Donation's recommendations for nonprofits.

Overview of Corporate Matching Gifts

Corporate matching gifts are donations made by a corporation to a nonprofit organization, typically matching an employee's charitable contribution. These donations are usually classified based on the corporation's stipulations and the nonprofit's accounting practices.

Key Points:

• Corporate Matching Gifts: Funds provided by corporations to match employee donations.

• Classification: Typically classified as unrestricted gifts unless specified otherwise by the corporation.

• Nonprofit Accounting: Always verify with your nonprofit's accountant to ensure proper classification.

Corporate Matching Gifts – Common Guidelines

The classification of corporate matching gifts often depends on the policies of the corporation providing the match. Here's an overview of the matching gift policies from several companies.

Examples of Corporate Matching Gift Policies:

1. We Energies:

   • Matching gifts are typically unrestricted.

   • Specific purposes may be designated, but the matching gift itself is unrestricted.

2. Caterpillar:

   • Matching payments are generally unrestricted, regardless of the donor's designation for specific projects.

3. CMS Energy:

   • Matching gifts are unrestricted, even if the donor specifies a particular project.

4. Nationwide:

   • Gifts may be designated for specific uses, but matching gifts are unrestricted for educational purposes.

5. Lenovo:

   • Although donors can designate gifts for specific purposes, matching gifts are unrestricted for institutional use.

Why Corporate Matching Gifts Are Generally Unrestricted

Corporate matching gifts are often classified as unrestricted funds because they are viewed as a standard corporate donation. The corporation typically does not impose restrictions on how the nonprofit uses the funds unless stated explicitly in their policy.

General Classification Process:

• If a nonprofit’s default gift classification is “Unrestricted,” matching gifts from corporations will typically be treated as unrestricted as well.

• If a corporation specifies restrictions, those should be honored; otherwise, matching gifts are treated as unrestricted.