How do NPR matching pledges work?

Factual Questions
1

My local NPR station started it’s pledge drive, and one thing they do is matching pledges. “All pledges in the six o’clock hour will be matched.” That kind of thing.

My question is who is doing the matching here? Are there people or companies out there who pledged open-ended amounts? Or is this just creative scamming, in that they “match” your donations with already pledged money?

2

The pledge drives for Minnesota Public Radio often have matching amounts. Today’s pledge drive had a matching $50,000 from Best Buy and a local college if the station could raise $120,000 by noon. (I’m unaware of whether this goal was reached.) In my experience of listening to MPR, the matching funds are often done by local businesses in exchange for the advertising and goodwill aspects.

The amounts also don’t seem to be open-ended in most cases, but capped at a specific value.

3

In many cases, it’s a marketing/psychology gimmick. In some cases, institutional donors are ENCOURAGED to donate with these “strings” instead of making a straight cash donation, under the reasoning that they can be used as ‘bait’ to lure in more individual donations. The station has nothing to lose: if a company was going to donate $50K anyway, they’ll donate any unmatched leftover separately when the drive is over. It wouldn’t make sense for them to hold it back.

I am fan of NPR, but this is the Straight Dope, and fairness dictates that I point out that, in such cases, the stations are being disingenuous when they advertise that you will double the benefit of your donation. Your donation only enriches NPR’s coffers by exactly the amount you donate. They’ll be getting the full amount of the commercial donation one way or another, anyway (at least in my area) It’s not a complete fraud, however, since you are indeed helping to double the impact – of the commercial donation.

Interestingly, this “double the value of your donation” argument is quite valid when made to potential commercial donors (the “matchers”) YOU are matching the institutional donation, not the other way around. I suspect that this pitch successfully squeezes a few extra bucks out of the commercial donors.

Since you presumably don’t donate unless you WANT to support the cause, this tactic is arguably win-win all around.