Charitable Matching Contribution Plan
If you would like to support the philanthropic giving of your employees, you may want to use a charitable matching contribution plan. A charitable matching contribution plan allows you to match the contributions that your employee makes to a charitable organization. Typically, a charitable matching contribution plan matches your employee's monetary contributions to a particular charity. However, your contribution can match your employee's volunteer efforts as well. Many companies reward employee volunteerism by making gifts that match an employee's participation in volunteer programs. Some companies even allow their employees to take time off from work with pay so that they can volunteer. A charitable matching contribution plan usually benefits educational institutions or other nonprofit organizations.
Example(s): XYZ Corporation offers to match up to 50 percent of an employee's contribution to the college or university of his or her choice. Mary, an employee of XYZ Corporation, wishes to donate $1,000 to her alma mater, State University. XYZ Corporation matches 50 percent of Mary's donation ($500) through the company's charitable matching contribution plan. As a result of both Mary's donation ($1,000) and XYZ Corporation's charitable matching contribution plan donation ($500), the total contribution made to State University is $1,500.