matching funds

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matching funds

A nonprofit organization secures matching funds for its community project.

Definition

Noun: - Funds provided on the condition of equal contribution: Money that is pledged or given only if an equal amount is raised or provided from another, separate source. This creates a one-to-one financial match.

Usage

This term is primarily used in the contexts of fundraising, grants, and institutional financing. It describes a specific conditional funding arrangement.

Examples
  • The research grant required matching funds from the university, meaning the university had to contribute one dollar for every dollar the grant provided.
  • Our nonprofit secured a donation pledge that would provide matching funds for all contributions made during the year-end campaign.
  • The government program offered matching funds to encourage private investment in renewable energy projects.
Advanced Usage
  • As a modifier: The term is often used adjectivally before another noun to describe the type of requirement or offer.
    • Example: The foundation issued a matching-funds challenge to stimulate community giving.
  • Concept of "Leveraging": The provision of matching funds is a strategy to leverage additional investment, making the initial funds more impactful.
Variants and Related Words
  • Match (verb): To provide funds corresponding to an amount from another source.
    • Example: The donor agreed to match all donations up to $10,000.
  • Challenge grant: A type of grant that functions on a matching funds principle, challenging the recipient to raise a specified amount to unlock the grant money.
Synonyms
  • Challenge grant (a specific type of matching funds arrangement)
  • Matching grant
  • Leveraged funding
Notes on Meaning

The core concept is conditionality and equivalence. The funds are not given outright; they are contingent upon the demonstration that an equal sum has been or will be secured from elsewhere. It is a mechanism to encourage and validate external support.

matching funds

A nonprofit organization secures matching funds for its community project.

Noun
  1. funds that will be supplied in an amount matching the funds available from other sources