In the grants world, "matching funds" means bringing two different funding sources together for one project. Match or cost-share requirements are minimum amounts of funding that must be derived from a source other grant funder. The purpose of match requirements is usually to promote collaborative efforts, as discussed in the July issue of GO Know, and/or demonstrate the ability of your organization to sustain a project beyond the life of a specific grant.

HHS recently announced over $390 million in federal funding for the Hospital Preparedness Program. This is federal funding that passes through state health departments to health care providers. Fiscal year 2010 is the first year that the federal government is requiring a 10% match on federal funds. In other words, states and local providers must commit at least $1 for every $10 in federal contributions.

Like most components of the $787 billion Recovery Act passed into law in 2009, the $4.35 billion Race to the Top grant program often receives notice as "unprecedented" for its sheer size. With nearly every state in the U.S. facing a budget deficit or outright fiscal crisis, the billions for education funding represent a critically important source to keep local school districts afloat.

Anyone who has ever been involved in a fundraising effort will recognize the following scenario in terms of process. A specific need for the organization has been identified. The equipment and training associated with the project will inevitably save time, money, and provide a long lasting impact to the community. Fiscally responsible organizations often factor in some level of cost-benefit analysis in their prioritization of projects, and without a viable funding source, often the project finds itself on the back burner when other costs such as salaries and overhead are factored into this zero-sum game.