In this article, we will define matching grants and the types of match funding that go along with them. We'll cover when you may want to consider matching grants, how to find them as well as how to implement matching grants as part of your overall grant funding strategies.
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If you’ve started exploring grants, you’ve likely come across matching grants and may not know precisely what these are. You may also wonder why you would apply for a grant that requires you to provide your own fiscal resources in order to be awarded.
In this article, we’ll define matching grants, the types of match funding that go along with them, why you may consider matching grants, and where to find them.
By the end of this article, you should feel comfortable finding and applying for matching grants in order to bolster your overall grant funding strategies.
Matching grants evolved as a response to the need for collaboration between nonprofits and funders to achieve common goals.
Matching grants are grants that require the applicant to provide funds in addition to the grant award. Essentially, the applicant is matching the grant funds with their own funds.
Originally used by governments and foundations to incentivize philanthropy, they have gained popularity in the nonprofit sector due to their ability to leverage resources effectively.
Matching grants usually encourage organizations to generate additional income that complements the project's objectives in the grant application.
They also provide the grantor the ability to scale the funding offered to organizations by stretching the number of grantees.
At first glance, matching grants might seem like a demanding task, requiring nonprofits to raise or allocate their own funds.
However, these grants come with a host of significant benefits that make them highly valuable in the nonprofit sector.
Understanding the mechanics of grant matching is essential for any nonprofit seeking to benefit from this funding strategy.
In this section, we will take an in-depth look into the mechanics of grant matching, shedding light on critical aspects such as matching ratios, practical examples, and the challenges that nonprofits may encounter.
Matching grants often come with specific matching ratios, typically expressed as 1:1, 2:1, or 3:1. These ratios determine the proportion of the grant that the nonprofit must match.
For instance, a 1:1 matching grant requires the nonprofit to match every dollar received with another dollar from its own resources.
Sometimes, matching grants will also be presented in percentages. For example, a 50% matching grant would require the nonprofit to contribute half of the grant amount from its own funds.
Matching grant’s often come with requirements that nonprofits must meet.
Here are a few common requirements to be aware of:
While matching grants offer substantial benefits, they are not without their challenges. Being prepared to navigate these hurdles can significantly increase your chances of success:
Let's simplify the concept of matching grants with a practical matching funds example.
Imagine your nonprofit is applying for a matching grant with a 1:1 ratio. The funder is offering a $50,000 grant if your organization can come up with an additional $50,000 from other sources.
This means that for every dollar provided by the funder, your nonprofit contributes an equivalent dollar, effectively doubling the grant's impact.
Let’s look at another matching funds example. Maybe your nonprofit is working toward expanding community playground resources, specifically to provide more ADA-accessible equipment.
Looking at the list of Grants for Children on Instrumentl, you find a matching grant that could provide the necessary funding for a new playground. The grant requires a 20% match. So, what does that mean?
If you request $100,000 for the playground project, and a 20% match is required, then you must demonstrate your ability to contribute $20,000 to the project (20% of the grant request). If the grant is awarded, the playground project would then have $120,000 available.
In summary, the example of matching funds works like this:
For a grant award of $100,000, a matching fund of 20% would be $100,000 x 20% = $20,000.
This matching funds example showcases a matching fund structure based on a percentage of the requested grant amount.
So, you now know how a match grant works, but how do you secure match funds? Where do you get that $50,000 or $20,000 described above?
The next section will talk more about what types of resources can be used in a matching grant.
What are the Different Types of Match Funding?
There are many options when it comes to match funding. Most matching grants will clearly outline the types of match funding that are or are not allowed. These funds are most commonly cash or in-kind resources.
The most common type of matching funds is cash. Organizations often plan for matching fund grants and try to accumulate a bit of a revenue reserve to address the need for match funding.
Cash also tends to be the least cumbersome to utilize as tracking expenditures is a familiar process for an organization.
Another common type of match funding comes by leveraging staff and resources already in the organization. Grant applicants are often able to quantify staff and resource value as an in-kind contribution toward match requirements.
In-kind match funding can also include the valuation of goods and services provided within the grant program.
When grants include in-kind matching of staff, it is important to consider any reporting requirements that may follow the designation of personnel to the grant program.
Some grants will require time and effort reports of the staff included as in-kind match funding. This means that the staff partially assigned to grant programs may have to keep track of when they are working on grant-funded activities to show the in-kind contribution of effort took place.
Additionally, the following funding sources may also provide match funding:
Donations play a role similar to cash reserves when it comes to matching grants. They offer immediate cash on hand that can be used to fulfill the matching grant's requirements. For nonprofit organizations aiming to scale up their programs or services, launching a donation campaign can be a strategic move.
This campaign can generate the necessary funds to meet the matching grant's criteria. Donations from individuals, businesses, or supporters can significantly contribute to your ability to secure matching funds and expand your impact.
Utilizing volunteers can be a valuable resource when it comes to fulfilling matching grant requirements. In a manner similar to in-kind staff allocations, the hours contributed by volunteers can often be quantified and counted toward your matching obligation.
Leveraging the dedication and time of volunteers not only helps meet the matching ratio but also showcases community involvement and support for your mission. This dual benefit of fulfilling grant requirements while engaging the community underscores the importance of volunteer contributions in the context of matching grants.
There are times when other grants may be able to provide the required match funding of a matching grant. Some refer to using grants in this manner as braided funding. You are weaving together a variety of funding streams to pay for a project or program.
Leveraging a variety of grants to fund a project is a viable option; however, you need to consider any grant restrictions that may prevent supplementing or supplanting existing grant projects. For example, many federal matching funds requirements will not allow other federal grant program monies as match funding.
The National Endowment for the Humanities shares a great resource for understanding typically approved and restricted match funding, for federal match grants in particular.
However, it is important to note that each grant may specify what is allowable as match funding and what is not. Be sure to read your grant application documents closely.
Prior to looking for matching grants, it may be helpful to look at your organization and start listing the possible match funds available. Where do you have resources and what value do they each hold?
Having a prepared understanding of what contributions you currently have available will assist you in knowing what additional fundraising efforts you may need or which matching grants you are prepared to apply for.
Steps to Write a Matching Grant
Securing a matching grant requires a strategic approach and a well-crafted proposal. In this section, we will outline the key steps involved in the process, from identifying opportunities to post-submission activities.
By following these practical steps, you'll be well-prepared to navigate the process of securing a matching grant. It's all about being organized, making a strong case for your grant-matching project, and working together with your community to make a positive impact.
Best Practices to Keep in Mind
To maximize your chances of success in securing matching grants, it's essential to follow best practices throughout the process.
These practices are a roadmap that will ensure that your efforts are both efficient and effective.
By following these straightforward best practices, you'll not only increase your chances of getting matching grants but also make your organization more effective overall.
Why Should You Look for Matching Grants?
We know that when looking for grants, your intention is to not strain internal or existing resources. You need new, additional funding for your organization. So, why should you still consider matching grants?
If you close the door on matching grants, you will be excluding one of the larger sectors of available grant funding. Federal grants regularly leverage matching funds in their application requirements. If you are a nonprofit organization, federal matching funds grants should be high on your list.
You may be reading this because you have already discovered in your grant searches that many (or most) state and federal grants have a match requirement. So, don’t shy away from these matching grant opportunities.
Matching grants also give you the opportunity to show your stakeholders that you are committed to the growth and development of your organization. Your donors and community partners may be more inclined to donate when you are able to show a possible match grant opportunity to leverage those donations further.
Fundraising and donation campaigns spurred by the need to build match funding for a grant can be a huge success. You are saying to your community that each of their donations will equate to a bigger impact in the sum of the project through the matching grant.
Through the application process of a matching grant, you have the opportunity to explore existing and new potential funding streams. By requiring match funding, applicants will have to consider where to find these resources.
This process can push you to identify new donor pools, expand community outreach and engagement, or re-examine your existing budget structure. Regardless of the outcome of your matching grant application, the process to apply will likely be beneficial.
Where Do You Find Match Granting?
Matching grants are a very common type of grant, and they are worth considering. You can find matching grant opportunities in many of the same places you look for all other grants.
Different federal departments, such as USDA, provide grant notification listservs that will alert you of new grant opportunities. Look for “Subscribe Now” buttons on your state and federal department websites.
Subscribing to these alerts will mean grant opportunities come right to your inbox rather than requiring you to keep a regular routine of searching online. Similarly, your state agencies often provide an email list to stay up to date on funding available through grant programs.
Grant notification listservs are great when you're able to find them. Unfortunately, they can be fragmented at times.
Other places to look for matching grants are through other local, state, and federal organizations that provide federal matching funds. Clubs and organizations such as Elks, Lions, and others regularly have fundraising efforts in order to provide grants to nonprofits and other local entities.
Consider your local community, in addition to state and federal agencies, and the possibility of grants through established organizations in your area.
A good option for finding and staying up-to-date on grant opportunities, including matching grants, is to explore the comprehensive grants list provided by Instrumentl.
Instrumentl has hundreds of curated grant lists for different types of grant funding.
Grants are organized both by state and by type of grant, so you can quickly search and identify potential grant options for your organization.
Instrumentl also provides multiple free grant workshops that can support your work in grant writing as you begin applying for matching grants.
Using Instrumentl helps you find grants that can best fit your organization and project goals, help you stay on track with deadlines and requirements, and manage reporting requirements even after you are awarded a grant.
Wrapping Things Up: What are Matching Grants?
So now you know that matching grants are grants that require your organization to provide partial funding for your grant proposal. Although the idea of spending money in order to bring in more money seems counterintuitive, it is really beneficial to consider this avenue for additional funding.
Matching grants provide you with the opportunity to engage your community and build more robust revenue streams.
Leveraging matching grants also gives you the chance to stretch the resources you have to implement your vision for your organization.
Using resources provided by Instrumentl will help you organize and prepare to find and write matching funds grants.
You’ll be able to dedicate time to writing for grants you are most likely to receive rather than spending time searching for grants.
If you’ve never tried Instrumentl, you can get personalized grant results for your nonprofit by starting a 14-day trial.
A matching grant is a type of funding provided by a donor or organization that matches the amount of money raised by the recipient, often up to a specified limit. This encourages fundraising and shows mutual investment in a project.
Matching grants work by setting a condition where the donor agrees to match the funds raised by the organization. For example, if a nonprofit raises $10,000, the donor will also contribute $10,000, effectively doubling the funds raised.
Matching grants help nonprofits by motivating donors to contribute, as their donations have a greater impact. They also enhance credibility, attract larger donors, and provide a deadline-driven fundraising strategy.
Matching grants are often offered by foundations, corporations, government agencies, and sometimes individual philanthropists. These entities aim to incentivize fundraising and support impactful projects.
To secure a matching grant, clearly demonstrate the impact of your project, maintain strong relationships with potential funders, and ensure transparency in your fundraising strategies. Proposals should align with the goals of the grant provider.
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