How to Start a Corporate Matching Gifts Program (Without a Foundation)

Historically, corporate philanthropy has been synonymous with large foundations that make huge, splashy donations that garner a lot of media attention. After natural disasters, it’s common to see mega-corporations taking out high-profile TV advertisements touting their charitable endeavors. 

Nothing is wrong with that method of corporate giving, but what about companies that can’t expend the necessary time and resources to keep up with a foundation? 

Groundswell offers a few corporate social responsibility (CSR) alternatives that are more accessible to small and mid-sized companies. One of these is a corporate matching gifts program, which unlocks opportunities for employees to flex their charitable muscles and make the world a better place.

Keep reading for more information on corporate donation matching and a unique charitable vehicle known as a donor-advised fund (DAF). 

Table of Contents:

• What is a Corporate Matching Gifts Program?
• Corporate Foundations vs. Gift Matching and Donor-Advised Funds (DAFs)
• How to Start a Corporate Gift Matching Program in 3 Basic Steps
• Donor-Advised Funds and the One Big Beautiful Bill Act (OBBBA)
• Manage Your Own Mini Corporate Foundation with Groundswell

What is a Corporate Matching Gifts Program?

The abridged definition of a corporate matching gifts program is an arrangement between company management and employees that triggers identical donations from employers after employees give to certified non-profits. Companies may offer to match donations equally or in some other ratio, such as doubling or tripling the employee’s donation.

Companies often place limits or guardrails on corporate matching programs. They might match donations only for a limited period, set a limit on each employee’s donation amount, or exclude controversial charities.

Explaining Donor-Advised Funds

Corporate donor-advised funds, or corporate DAFs, enable employees to make a large contribution at one time, receive tax benefits, and then spread out their donations over several months or years. 

DAFs also allow donors to give stocks, closely held business interests, real estate, and other assets that can appreciate over time. The cherry on top is that donors don’t have to pay capital gains, dividends, or interest taxes on DAF assets.

Corporate Foundations vs. Gift Matching and Donor-Advised Funds (DAFs)

There’s no rule or law forbidding smaller and mid-sized companies from starting corporate foundations. Similarly, many companies with foundations also offer corporate gift-matching programs. Each method works well for different purposes and goals, however. 

Corporate foundations may be best for your company if you:

• Have the money, staff, and other resources needed for tax and legal reporting required of corporate foundations, which are typically classified as 501(c)(3) nonprofits under the IRS
• Wish to have a singular charitable entity that’s closely associated with your company
• Want your company’s donations to go toward a specific cause or charity
• Know plenty of charity-savvy individuals who can serve on the board of directors
• Desire complete or near-complete control over your company’s charitable donations

Conversely, corporate donation matching programs involving DAFs might be a better fit for your company if:

• Your company would like a third-party platform to manage donations and related administrative tasks
• You and other executives want a democratized, bottom-up approach to charity instead of a top-down approach
• Increasing employee engagement, enthusiasm, and morale is something you want to achieve with your CSR programs
• You want a flexible CSR initiative that can scale as your company grows

How to Start a Corporate Gift Matching Program in 3 Basic Steps

We created Groundswell on the idea that entrepreneurs and managers shouldn’t limit their CSR ambitions based on the size of their company. Our software makes it easier and more convenient than ever for companies to launch corporate gift matching programs, no matter their size. All they need to do is the following:

1. Make sure gift matching and DAFs fit your company’s mission.

If you want to give every employee of yours the opportunity to craft their own legacy with few administrative burdens on your accounting department, gift matching is likely the better fit. There’s no reason not to be thorough, however, and ensure that employee-led giving and DAF programs line up with your company’s charitable goals. 

2. Set employees up with their own donor-advised funds with intuitive software. 

While DAFs and corporate donation matching programs are less burdensome than corporate foundations, they do involve some legal and administrative paperwork. Not to fear—platform providers like Groundswell offer turnkey charitable solutions. With Groundswell, every employee gets their own DAF, and signing up for a donor-advised fund only takes a few minutes, with Groundswell handling the boring behind-the-scenes stuff.

3. Offer time-bound donation matching campaigns. 

At first, your company may want to place some sensible limits on employee gift matching. Your team may decide to limit matching to a specified window of time or a total amount. Employee-specific limits might also make sense in the beginning. 

4. Easily manage multiple giving accounts within a single dashboard.

Without a bespoke CSR platform, managing multiple giving programs and other giving accounts can become overwhelming. Groundswell’s intuitive, simplified software makes it easy to keep track of multiple DAFs, as well as volunteering, grants, and employee assistance funds (EAFs).

5. Enjoy instant donation matching and quick donation distributions. 

Legacy CSR platforms can take up to 90 days to match employees’ donations and send the matched funds to recipients. We think that’s way too long, especially when nonprofits urgently need resources to mitigate damage after national disasters and catastrophes. We make things easier on everyone by instantly matching donations and sending funds to charities within 24 hours.

Donor-Advised Funds and the One Big Beautiful Bill Act (OBBBA)

Recent changes made by the 2025 OBBBA have put DAFs into the national spotlight. One of the OBBBA’s new rules requires C corporations to donate at least 1% of their taxable income in a given year before itemizing those deductions. By combining several years’ worth of donations into one year through a DAF, companies can comply with the new rule and keep the favorable tax treatments they may have used in previous years. 

Manage Your Own Mini Corporate Foundation with Groundswell

Both corporate foundations and donor-advised funds were once relegated to uber-wealthy corporations and individuals. Before CSR software, adhering to the many legal and financial requirements was too cumbersome for the rest of the country.

Things started to ease with the internet and CSR software, but the legacy platforms weren’t moving quickly enough for Groundswell. We set out to make CSR programs—grants, volunteering, DAFs, EAFs, and corporate gift matching—as easy for smaller companies as they were for the Wall Street players.

Groundswell’s intuitive platform can help you manage all of those CSR initiatives and reduce your administrative burdens by up to 90 percent. 

It might sound too good to be true, but it’s not. We’d like to prove that to you and your team by presenting a quick, personalized demo.

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