Cost Sharing and Matching Costs: What You Need to Know

When you apply for a grant, you may be required to contribute a portion of the project costs yourself. This is known as cost sharing or matching costs. The amount of cost sharing or matching required will vary depending on the grantor and the specific grant.

Grantors require cost sharing or matching for several reasons. First, it helps to ensure that the grantee is committed to the project and is willing to invest their own resources. Second, it helps to spread the cost of the project over multiple organizations. Third, it can help to ensure that the project is sustainable after the grant funding ends.

There are two main types of cost sharing or matching: cash and in-kind. Cash cost sharing is when the grantee contributes money to the project. In-kind cost sharing is when the grantee contributes goods or services to the project.

The amount of cost sharing or matching required will be specified in the grant announcement. Typically, the grantor will require the grantee to contribute a certain percentage of the total project costs. For example, if the grantor requires a 50% cost share, the grantee would need to contribute $50,000 for a project with a total cost of $100,000.

Cost sharing or matching can be a valuable way to increase your chances of getting a grant. By understanding the different types of cost sharing or matching and how to calculate them, you can increase your chances of success.