Cost share and matching funds: how matches work
What a matching requirement means, cash versus in-kind contributions, and how to calculate a match correctly before you apply.
Some programs pay only part of a project and expect you, or partners, to cover the rest. That contribution is called cost share or matching funds.
Read how the match is defined
"A 1:1 match" or "50% cost share" sound simple, but funders define the base differently. A match can be a percentage of the total project cost or a ratio to the funder's share. A 50% cost share of the total project is the same as a 1:1 match; a 50% match of the funder's share is not. Our cost-share calculator shows both ways.
Cash and in-kind
Cash is money spent on the project from your own funds or another funder. In-kind is the value of goods or services contributed without cash changing hands, such as donated space, equipment use or volunteer time. Many funders accept in-kind, but they set rules on how to value and document it.
US federal rules
For US federal awards, 2 CFR 200.306 sets out what counts toward cost sharing. Contributions must be verifiable from your records, necessary for the project, allowable under the cost principles and not counted toward another federal award's match.
Practical tips
- Get commitment letters from partners who provide match, stating the amount and type.
- Track match as carefully as grant spending; it is often audited.
- Only promise a match you can document. Unmet match can mean repaying part of the grant.
- Voluntary match beyond what is required may still become binding once it is in your budget, depending on the funder.