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Matching Funds
Matching funds are the portion of a
project or program costs that are not borne by the funding source.
Most government grants require matching financial participation by
the applicant. In some cases, the granting agency specifies a
minimum match (e.g. 25% or 50% of the total project cost). In other
instances, the funding source encourages but does not dictate the
percent of match.
Applying for grants is a competitive
process so the match needs to compare favorably with match dollars
offered by other proposers. Proposals that include a significant
match are perceived by the reviewers and the funding source as more
competitive and are therefore more likely to be funded.
Showing an appropriate match:
- Demonstrates
institutional commitment that goes beyond just conducting a
program. The funding source wants to see an indication of
institutional support for the program and some likelihood that
we have the resources with which to continue the program after
the external funding ceases.
- Provides
a more accurate picture of the actual cost of delivering a
service. The funding source needs to know the total cost of
replicating the program elsewhere.
- Reduces
the amount of money required of the funding source, thereby
allowing additional projects to be funded in other locations.
Frequently, the grant application will
indicate the types of match that are acceptable for a particular
program. Generally speaking, match is allowable for the same cost
categories that are allowable from grant funds. To qualify, the
match dollars must be used to meet the objectives of the proposed
project and may come from either the college or a third party, but
not from other grants.
There are two types of match:
1. Cash
Contributions: cash outlay from
the College's operational accounts or a non-Federal third party to
support the program. Examples of a cash contribution include a
portion of the Project Director's salary that is being paid by the
institution or a cash contribution to match federal dollars for the
purchase of instructional equipment.
2. In-kind
Contributions: value of
non-cash contributions provided by the College or a non-Federal
third party. They may be in the form of charges for real property
and non-expendable personal property, and the value of goods and
services directly benefiting and specifically identifiable with the
project or program. Examples include the value of space, equipment,
volunteers, and supplies for the program; supervision; and in some
cases, any unreimbursed portion of the negotiated indirect cost
rate.
For example, the National Science
Foundation awards funding to purchase laboratory equipment for
projects that enhance the teaching of science. This program requires
a minimum 50% match. NSF will pay for at least half of the equipment
cost and the college must demonstrate in its proposal that it will
pay for the other half.
During the proposal preparation
process, grant writers review the matching requirements contained in
the grant application. In addition, grant writers generally discuss
matches with Program Officers to find out the match amounts offered
by proposals that were funded the prior year. This information helps
arrive at a match amount that will be competitive without being
excessive.
A few examples of matching costs which
people tend to forget about:
A. When
consultants charge a lower rate since you are a educational
institution, you can use the difference from the normal rate to the
educational discount rate as in-kind dollars. The documentation
which needs to be provided is a letter from the consultant including
the normal rate charged and the educational discount rate.
B.
If an advisory committee participates,
charge this time as if their company was billing them for time. Keep
detailed meeting minutes showing who attended, the times they were
there, and travel time for each attendee.
C. In-kind
match can also come from technical assistance, mentoring, job fairs,
tutoring, field trips and presentations. Keep a log which states the
name, phone number, position, and hours spent traveling and at the
actual visit/meeting.
D.
Educational discounts on software,
equipment and supplies. This can be used on most grants not all
though. (Cash Contribution)
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