Some programs expect you to put skin in the game. Cost sharing (or “matching”) means contributing part of the project’s cost from non-federal sources. Get it right, or risk an unallowable application.
What cost sharing means
If a NOFO requires a 25% match, you must contribute 25% of total project costs from non-federal sources. The requirement is stated in the eligibility or award section of the NOFO — read it carefully, because a required match is mandatory, not optional.
Cash vs in-kind match
Your match can be cash (your own funds, other non-federal grants) or in-kind — the documented value of donated goods, volunteer time, or space. Most programs accept both when properly valued and recorded. See in-kind contribution.
What doesn’t count
You generally cannot use other federal funds to match a federal grant, and you can’t double-count the same contribution across multiple awards. Costs must be allowable, verifiable, and necessary to the project.
Document everything
Keep records proving every matching contribution — pledge letters, timesheets for volunteers, valuations for donated items. Auditors check this, and unverified match can be disallowed after the fact. Reflect your match clearly in the budget.
Factor it into your decision
A large required match can put an opportunity out of reach for a small organization — decide early whether you can meet it. When in doubt, ask the program officer before you invest in the application.
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Frequently asked questions
Can I use other federal funds as my matching contribution?
Generally no. Matching funds must come from non-federal sources unless a specific statute allows otherwise. Using federal money to match a federal grant is typically prohibited.
Does volunteer time count as a match?
Yes, as an in-kind contribution, when the program allows it. You must document the hours and value them at a reasonable rate consistent with the work performed.