Grant matching, often referred to as “match,” “matching funds,” or “cost sharing,” is a practice in which an organization or individual seeking a grant contributes a portion of their own resources to complement the grant funds they are applying for. This means that for every dollar provided by the grant, the recipient organization or individual commits to providing a specified amount from their own resources. Matching funds can come from various sources, including cash, in-kind contributions, or other forms of support.
Matching funds can be a valuable tool for securing grants and strengthening the financial sustainability of projects and initiatives. It is essential to carefully review grant guidelines to understand the specific requirements and restrictions related to matching funds. Organizations or individuals should maintain accurate records and documentation of the matching contributions to demonstrate compliance with grantor requirements. Matching funds generally follow the same requirements as grant funds, and documentation and performance for matching funds should be treated the same as with funding received from the grant.
Grant matching serves several purposes to ensure grant funds are awarded for the broadest possible effect. One of the primary purposes of grant matching is to maximize the impact of grant funds. By providing matching funds, the grant recipient demonstrates a commitment to the project or initiative, and this commitment can make them a more attractive candidate for funding. It allows grantors to invest their funds more effectively, knowing that there is additional support from the recipient.
Grant matching serves as a way for the grant applicant to demonstrate their dedication to the proposed project. It shows that the applicant is willing to allocate their own resources to support the project’s objectives, which can be a compelling argument when competing for grant funds. Matching funds can also help make a project more financially viable, as they can provide a financial cushion that can cover unexpected expenses or budget shortfalls, increasing the likelihood of project success.
Many grant programs are highly competitive, with more applicants than available funds. Providing matching funds can set an applicant apart from others and increase their chances of securing the grant. It demonstrates a higher level of commitment and resourcefulness.
Some grant programs require applicants to provide matching funds as a condition of eligibility. In such cases, organizations or individuals must secure the matching funds before they can receive the grant. This requirement ensures that the applicant has the financial capacity to see the project through to completion. Matching funds can take various forms, including:
- Cash contributions. The grant recipient provides a specified amount of money from its own funds to match the grant.
- In-kind contributions. These are non-cash contributions, such as donated services, equipment, or materials, that have a measurable and documented value. In-kind contributions can be used as matching funds when allowed by the grantor.
- Volunteer hours. Some grant programs accept volunteer hours as matching contributions. The value of volunteer work is often calculated based on hourly wage rates.
- Partnerships. Collaborating with other organizations or partners that provide funding or resources for the project can be considered matching funds.
Grant matching requirements can be complicated, and can impact the success of your grant-funded activity. Colhio Grant Consulting can help grantees navigate grant matching requirements and sources. Contact us for more information on how we can help you.