5 ms·
The 1:2 match scheme is helpful for a foundation to (a) accept large gift and (b) meet 501c3 1/3rd "public support" requirements. To keep favorable charity tax
by clcaev 9d ago
The 1:2 match scheme is helpful for a foundation to (a) accept large gift and (b) meet 501c3 1/3rd "public support" requirements.
To keep favorable charity taxation status, a large donation can only be accepted if there are sufficient small donors who also contribute. It's complex and indirect, but the matching is quite real as a $100 contribution from a small donor enables the charity to accept a corresponding amount from large donor pledges.
- grogers 9d agoI was always confused about why charities did this type of matching gifts, it always seemed a bit odd just to trick people to giving right now and not whenever. Interesting that there's a structural reason for it, TIL, thank you