A Comprehensive Guide on Matching Grants


Last updated: 6 months ago

This comprehensive guide will take you through the process step-by-step, from identifying potential sources of support to effective grant writing.

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Matching grants are a great way to incentivize giving. By matching a certain percentage of each donation, you are doubling the impact of every gift! Not only do donors feel appreciated, but they are also more likely to give again in the future. Creating a matching grant can be a daunting task, but it is well worth the effort. But how do you make a successful match? And what are the best practices for utilizing matching grants?

This comprehensive guide will take you through the process step-by-step, from identifying potential sources of support to effective grant writing. By following these tips, your organization can secure the funding it needs to make a difference in your community.

About Matching Grant Program

A matching grant is a type of grant in which the recipient must match the amount of funding provided by the grantor. For example, if a company offers a $10,000 matching grant to a charity, the charity must raise an additional $10,000 from other sources in order to receive the entire $20,000.

This type of grant is typically used to incentivize new or increased investment in a project or cause. In most cases, the grantee must prove that they have raised the matching funds before being awarded the grant.

Matching grants can be used to support a wide variety of initiatives, from small community projects to large-scale capital campaigns. Matching grants comprise foundation, state, and federal grants. All are a great way to jumpstart a fundraising effort. You should always ensure that all the necessary paperwork and procedures are in place before applying for a matching grant.

By matching the funds, you raise, you can do better with less effort. If you're thinking of applying for a matching grant, do your research and make sure you understand the terms and conditions. With some planning and preparation, you can make the most of this valuable funding opportunity.

Why Use Matching Funds?

A matching grants program can help ensure that community groups are sustainable and continue their work long-term, thus improving the quality of life. There are various benefits that the matching grants program offers. Some of the benefits are as follows:

1. The matching grants program encourages private sector spending and investment

Local businesses are more likely to invest in a community when they know that their investment will be matched dollar for dollar, encouraging economic growth and job creation.

2. It helps to develop a sense of community spirit

When residents see that their town is investing in itself, they feel more connected and prouder to live there, increasing civic engagement and a stronger community spirit.

3. It strengthens the relationship between the town and its businesses

A matching grants program shows that the town is willing to work with businesses to help them grow and succeed. Consequently, this builds trust and cooperation between the town and its businesses, leading to business growth in the community.

4. It can help to attract new businesses to the town

A matching funds program is a great way to showcase a town's commitment to economic development and job creation. New businesses established in the town will increase economic growth and prosperity.

A match funding program sends a message to potential residents and businesses that the town is open to business and committed to economic development. It can help attract new residents and businesses to the town, stimulating economic growth and creating jobs.

Types of Match Funding

When deciding which type of match funding to use, nonprofits should consider the amount of money they need to raise, the amount of time they have to raise it, and the skills and resources that they have available.

Meanwhile, you might consider reading how to write the best grant proposals for nonprofits

There are four main types of funding that can be used for matching funds. They include cash, donations, in-kind, and volunteers.

Cash is the most common type of match funding. It is used to supplement the grant or loan a nonprofit seeks from a funding organization. The cash can come from the nonprofit itself, individuals or businesses, or other fundraising activities.

 Donations are funds or goods given to a nonprofit by individuals or businesses. The donations can be in the form of cash, goods, or services.

 In-kind donations are goods or services given to a nonprofit by individuals or businesses. In-kind donations can include food, office supplies, or event space.

 Volunteers are people who donate their time and talents to a nonprofit. Volunteers can help with various tasks, such as fundraising, marketing, or event planning.

Steps to Secure a Matching Grant

Now that you know more about matching grants let's look at the steps needed to secure one for your community group.

1. Prospect

The first step is to identify potential funding sources. For instance, this can include individual donors, businesses, or government grants. Once you have a list of possible sources, research each to see if they offer matching grants.

2. Cultivate

Once you have identified a potential funding source that offers matching funds, it's essential to build a relationship with them. For example, this can include sending them information about your community group and the work you do, meeting with them to discuss your project, or inviting them to participate in your events.

3. Ask for help

Once you have a good relationship with a potential funding source, it's time to ask for help. You may ask them to sponsor your community group, match the funds you raise, or make a donation.


Matching grants assist communities in funding local projects. In addition, they help to build relationships between the town and its businesses, attract new businesses to the town, and send a message to potential residents and businesses that the town is open for business. To secure funding for your community group, you only need to identify and research potential grantors, build a good relationship with them and then ask for help. Following this process will help you in grant writing, and you can then receive match funding for your community group's projects.

FAQs Section

Q: Why do matching grants exist?

A: Matching grants exist to encourage others to donate to a cause. When people see that their donation will be matched, they are more likely to give.

Q: How do I know if I'm eligible for a matching grant?

A: Eligibility requirements vary depending on the grantor but typically require that the recipient meet specific criteria, such as being a registered charity or having a particular purpose.

Q: How do I apply for a matching grant?

A: The best way to find out is to contact the grantor directly. Some grantors have online application forms, while others require a more traditional paper application.

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