What Is Match Funding?
Match funding (also called co-funding or matched funding) is the financial contribution you make to a grant-funded project. If a grant offers 50% funding, you provide the other 50% as match funding. This demonstrates your commitment and ensures you have 'skin in the game'. Grant providers believe projects are more likely to succeed when recipients invest their own resources.
Understanding Intervention Rates
The intervention rate is the percentage of project costs covered by the grant. A 75% intervention rate means the grant covers 75%, and you match 25%. Typical rates range from 30% (you fund 70%) to 80% (you fund 20%). Higher intervention rates are often reserved for research projects, disadvantaged areas, or strategic priorities.
What Counts as Match Funding?
Accepted match funding typically includes: cash from your business (retained profits, working capital), director loans, bank loans or overdrafts, investor funding, and sometimes in-kind contributions (your time, existing assets). Check each grant's rules - some only accept cash contributions, while others allow broader sources.
In-Kind Contributions
Some grants accept in-kind match funding - non-cash contributions like staff time, equipment use, or premises. These must usually be valued using specific methods defined by the grant provider. In-kind is often capped at a percentage of total match. Get clarity on what's accepted before applying.
Planning Your Match Funding
Before applying, ensure you can access your match funding contribution. Consider: when will you need the funds (often before grant payments), what evidence is required (bank statements, loan agreements), and whether sources are confirmed or speculative. Grant providers may request proof of match funding availability.
Common Match Funding Pitfalls
Avoid these mistakes: assuming you'll find match funding later, using the same funds as match for multiple grants, confusing turnover with available cash, and not accounting for timing (you often spend before receiving grant payments). Plan conservatively and confirm sources early.
Key Takeaways
Match funding is a key consideration when applying for grants. Understanding the requirements and planning your contribution early will help you access more funding opportunities and deliver successful projects. If match funding is a barrier, look for grants with higher intervention rates or explore alternative financing options.