What are Challenge Gifts?

A challenge gift is a great way for donors to use their gift as a means of inspiring and encouraging other donors. Typically, a donor will commit to donating some amount of money to a program or cause, with a precondition–or challenge–that all other donors must meet some goal or take some action within a certain amount of time in order for the gift to be fulfilled. Common challenges include goals for total money raised or total number of donors, and "dollar-for-dollar" matches that effectively double or triple the impact of all donations up to a certain amount.