Despite the unusual circumstances that have marked 2020, the holidays continue to be a time to take stock of the blessings in our lives. It is also a time when we begin to think about supporting non-profit organizations and projects we value.
As a 3M employee or retiree, you may be aware of the corporate gift matching program. This is a great way to make your volunteering and/or charitable donations go further. Since it may only come up once per year, we thought a quick refresher along with other giving strategies might be helpful as you plan year-end donations. There have also been some changes to the program in recent years.
Through the 3M Foundation, your employer provides three different matching programs:
Who is eligible to participate?
This program donates $500 to a charity for 25 or more hours of volunteerism at that charity. Here are some stipulations:
Which charities can benefit?
Example: Samantha, a recent 3M retiree, logs 25 volunteer hours at her local food bank. After submitting her volunteer hours logged into the employee engagement portal, the Food Bank receives $500 as a matching gift.
This program provides a 1 to 1 match, up to $1,000, per calendar year. Here are some stipulations:
Which charities can benefit? Same as Volunteer Match Program above.
Example: Johann, a current 3M employee, arranges for a transfer of appreciated 3M stock plan shares to the account of his local youth mentoring program. As of the date of the donation (transfer) the stock was worth $3,000. After submitting his match request through the employer engagement portal, 3M sends the mentoring program a check for $1,000, matching Johann’s gift. As a result, the charity received a total donation of $4,000.
This program provides a 1 to 1 match, up to $5,000, per calendar year for current US employees, and a 0.5 to 1 match for US retirees of 3M, to an eligible college or university. Here are some stipulations:
Which charities can benefit?
Example: A former 3M scientist, Lucinda, retired 4 years ago. She sends a gift to her alma mater, the University of Minnesota, in the amount of $10,000 in December 2020 and submits documentation of her gift by December 31 via the 3M Employee Engagement Portal. 3M Foundation sends a check to the University of Minnesota for $5,000 to match (0.5:1) Lucinda’s donation. The University receives a total gift of $15,000.
Note: US retirees of 3M may participate until their fifth-year anniversary of retirement at the time a matching gift is requested
*It is important to notes that 3M Foundation cannot guarantee all requested matches will be granted. All matching will be limited by the annual budget of the Foundation.
 Processing fees apply to Payroll and Credit Card transactions – see FAQs link below
A DAF is a type of charitable giving account that can be used to streamline your philanthropy. DAF accounts can be established through a variety of community foundations as well as commercially sponsored charities such as Schwab Charitable and Fidelity Charitable.
With the DAF, transferring cash or appreciated securities (shares of publicly traded stock) is made relatively easy. Donors have the potential to receive an income tax deduction for the full market value of the gifted securities.
Once funded, the DAF can be reinvested according to the risk orientation of the Donor-Advisor. From there, the Donor-Advisor can request grants to qualified charities.
Many clients of PrairieView Partners will use their DAF to control the timing of a tax deduction while maintaining a consistent pattern of annual donations to charity.
The Tax Cuts and Jobs Act (TCJA) that went into effect in 2018 increased the Standard Deduction for taxpayers. As a result, many filers no longer itemize income tax deductions. This means your charitable donations may not result in a tax savings. If you are over the age 70 ½ you may want to consider sending donations directly from an IRA. There are also strategic ways to “front-load” a Donor Advised Fund and benefit with an income tax deduction.
If you have questions about the 3M Matching Gift Program or the various ways to carry out your charitable giving plan, please let us know!