What Does Local Match Mean – Denton Law Firm

What Does Local Match Mean?

As agencies, local governments and special districts pursue funding opportunities to financially support their projects or programs, they often are confused about what qualifies as “local match.” There is not a one-size-fits-all definition for matching funds. Funding sources, particularly Federal Grants, will define what is allowed as matching funds within the Notice of Funding Opportunity (NOFO).

Some Federal funding sources may allow other federal funds secured through a sister agency to be counted as match while others may only allow cash contributions. Furthermore, some may allow in-kind contributions as match.

Examples of in-kind contributions may consists of force labor or use of a local applicants equipment. The definition of in-kind, if allowed, will be described in more detail within the NOFO.

In my experience, the most commonly allowed matching funds are derived from:

    1. The applicant’s general fund;
    2.  Other grant funds (including private/foundation grants, state grants, and federal grants);
    3. In-kind contributions;
    4. A secured loan from a lending institution or federally subsidized loan program;
    5. Incentives provided by a State or Local unit of government; and,
    6. Donations and/or Capital Campaign.

A common mistake made by agencies, local governments and special districts is failure to prepare a financing strategy for a given project or program. Securing matching funds in time to submit an application for funding can be a challenging hurdle to overcome. A financing strategy can identify sources of funds and the related deadlines for submitting applications,. It can also identify sources of seed monies and the right sources of funds to fit your project relieving the “matching funds” burden. Additionally, the strategy can establish a time line for securing the funds necessary to complete your project, allowing your project to stay on track.

It is prudent to consider and even begin securing the appropriate matching funds at the very earliest possible time. Denton Law Firm can help make that process or discussion more robust. If you would like to discuss this further at any time, please do not hesitate to call up on us.