Matching gifts are a type of corporate giving program that essentially double an employee’s initial donation to an eligible nonprofit organization.
The first matching gift program began in 1954. The GE Foundation created the Corporate Alumni Program that matched employee donations to schools and universities.
Since then, companies of all shapes and sizes have created matching gift programs to give back to nonprofits and encourage employee philanthropy.
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The advantages of making “gifts-in-kind” donations. Donating your unwanted merchandise, on the other hand, can allow a company to accomplish good works while reaping tax benefits. Under IRC Section 170 (e)(3), C Corps that donate their unused inventory to qualifying nonprofits can receive deductions equal to the cost of the inventory donated, plus half the difference between the cost and fair market selling price (not to exceed twice the cost).
Translation: An item that costs $10 to make and retails for $30 could earn your company a tax deduction of up to $20.