What is match funding for grants? A practical UK guide

Read the contribution section of the programme guidance alongside its budget form. Write down the required percentage or amount, which costs it applies to, the permitted sources and the point when the contribution must be secured. If the form and guidance appear to disagree, ask the funder before building a budget around either interpretation.

A funder may use the term “partnership funding”. For example, the National Lottery Heritage Grants £250,000 to £10million guidance uses that term for contributions including cash, non-cash support and volunteer time. It also says money from other National Lottery distributors cannot count towards the minimum required contribution, even though it can form part of the wider partnership funding. Check both the type of support and where it comes from.

Keep the programme name, guidance link and date checked beside your budget. The examples here illustrate different rules; they do not establish one match-funding rule for all UK grants.

First identify the base for the calculation: total eligible project costs, the grant requested or a particular phase of the work. These are different numbers. Ask whether the percentage applies to cash costs alone or includes an accepted value for non-cash support.

Here is a fictional, cash-only example. A programme will fund up to 80% of eligible project costs and requires the remaining 20% from other accepted sources. Your eligible budget is £25,000, so the maximum grant request is £20,000 and the contribution is £5,000. Calculating 20% of the £20,000 grant would produce £4,000 and leave the project £1,000 short.

• Starting with project costs: £25,000 × 20% = £5,000 contribution.
• Starting with a grant request: £20,000 ÷ 80% = £25,000 total eligible costs.
• Reconciliation: £20,000 grant + £5,000 contribution = £25,000 costs.

The percentages above are invented for the calculation, not taken from a live grant offer. Build the eligible cost budget first; use our full cost recovery guide if you need help allocating shared overheads. Then apply your chosen funder's actual contribution rule.

List each proposed contribution by type before adding it to the funding total. The Heritage Fund's £10,000 to £250,000 application guidance describes non-cash contributions as things the project needs but does not pay for, such as donated materials or free use of a room. It asks for an estimate of what they would have cost to buy.

For each donated item, record the provider, quantity, intended use and basis of valuation. For volunteer time, ask whether it is accepted, which activities qualify and what rate to use. The larger Heritage Grants programme specifies its own volunteer-time rate. Do not transfer that rate to another funder's application.

Keep a separate cash view of the budget. A donated room can remove a room-hire bill, but its estimated value cannot pay a facilitator's invoice. Before treating in-kind support as the answer to a funding gap, check that it meets the contribution rule and that cash income still covers the bills you will actually pay.

Create a contribution record with six fields: source, cash or non-cash, amount or value, status, evidence and expected receipt date. Use explicit statuses such as “formally offered”, “application awaiting decision” or “fundraising target”. Do not present a hoped-for award as money already secured.

In its £10,000 to £250,000 application questions, the Heritage Fund defines a secured cash contribution as money reserved for the project in your bank account or money formally offered. Its evidence examples include an offer letter or bank statement. Use your actual funder's evidence requirements when assembling the application.

In the fictional £25,000 project, suppose a supporter has formally offered £3,000 and you plan to raise £2,000 at events. Record those separately: £3,000 offered and £2,000 unconfirmed. Name the person responsible for the remaining fundraising and set a decision date for revising the project if the target is missed.

Put expected income and spending into a month-by-month cash forecast. A contribution promised for the end of the project will not cover a supplier payment due at the start. Check payment dates and conditions in each offer before committing to expenditure.

Timing can also affect permission to start. The Heritage Fund's £10,000 to £250,000 receiving-a-grant guidance says applicable cash contributions must be secured before it processes the grant terms and conditions. It may ask for a cashflow forecast and proof of partner funding. An application-stage estimate is therefore not the final evidence check.

If a contribution falls through, work out the cash shortfall and the effect on any required percentage. Ask the funder about a revised scope, replacement contribution or changed timetable before treating any of those as agreed. Keep a single budget showing which source pays for each cost so that separate applications do not accidentally request payment for the same expenditure twice.

• Is match funding required, preferred or unnecessary for this programme?
• What is the calculation based on, and does the budget meet it?
• Are every contribution's type, source and valuation acceptable?
• What evidence is needed now, and what must be secured before starting?
• Can the project pay its bills on time if another funding decision is delayed?

Use OpenGrant's Charity / VCSE and Grant filters to build a shortlist, then read the contribution rules on each funder's website. The search filters do not confirm match-funding requirements. Our charity grants guide can help you compare funding routes; the application checklist covers preparing the rest of your bid.