Are "challenge grants" for real?

Factual Questions
1

I get many solicitations from non-profit organizations (NPO’s) asking for contributions. Sometimes they will say that they have a “challenge grant” wherby whatever is contributed by a certain date will be “matched dollar-for-dollar” by some named or unnamed contibutor. Or they will say that if they raise a certain amount by a certain time it will be matched (common on public radio stations).

Some of these NPO’s are very reputable organizations so my skepticism is held somewhat in check.

Why have a challege grant? Why not just make a contribution? If they set a goal amount that doesn’t get met will the party making the grant really withhold the contribution? What’s the deal with these things? Should I just ignore them.

As a lifelong skeptic these things only make me more skeptical.

2

I looked at Google and found this page on a Chicago NPR station’s web page. It looks like the advantage to a challenge grant is that the donor gets the name of its business said over and over, a neat trick since NPR doesn’t use advertising. And the NPR station gets extra donors through the challenge schtick. Everybody’s happy.

I don’t know for sure, but if it were my business, and a challenge grant wasn’t met, I’d offer it again at a different time and get twice the advertising.