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3.3 Matching or Cost Sharing Requirements

Types of Match

Match requirements are typically stated as a percentage of the total project costs for an award. For example, a 20 percent ??(20%) match on a $100,000 project would be $20,000, where $80,000 is provided by the Federal Government and $20,000 is provided by the recipient.

There are two kinds of match:

  • Cash match (hard) includes cash spent for project-related costs. An allowable cash match must include costs which are allowable with Federal funds, except acquisition of land, when applicable.
  • Third party in-kind match (soft) includes, but is not limited to, the valuation of non-cash contributions. “In-kind” may be in the form of services, supplies, real property, and equipment.

For example, if in-kind match is permitted by law, then you can use the value of donated services to comply with the match requirement. Also, third party in-kind contributions may count toward satisfying match requirements, provided the recipient of the contributions expends them as allowable costs.

Documentation supporting the market value of in-kind match must be maintained in the award recipient files. Valuation of in-kind match may take one of the following forms:

  • Valuation of donated services. Volunteer services furnished by third-party professional and technical?? personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing?? or matching?? if the service is an integral and necessary part of an approved project or program.
    • Volunteer services. Recipient or subrecipient rates for third-party volunteer services must be consistent with those rates ordinarily paid for similar work in the recipient's or subrecipient's organization. If the recipient or subrecipient does not have employees performing similar work, the rates will be consistent with those ordinarily paid by other employers for similar work in the same labor market. In either case, a reasonable amount for fringe benefits may be included in the valuation.
    • Employees of other organizations.When an employer other than a recipient or subrecipient furnishes free of charge the services of an employee in the employee's normal line of work, the services will be valued at the employee's regular rate of pay plus an amount of fringe benefits, but exclusive of overhead costs. For additional guidance on cost sharing or matching, please review ????2 C.F.R. ?? 200.306.
  • Valuation of third party donated supplies, equipment, or space.
    • If a third party donates supplies, equipment, or space, the value must not exceed the fair market value of the property at the time of donation.
  • Valuation of third party donated equipment, buildings, and land.
    • If a third party donates equipment, buildings, or land, and title passes to a recipient or subrecipient, the treatment of the donated property will depend upon the purpose of the Federal award.
    • Awards for capital expenditures. If the purpose of the award is to assist the recipient or subrecipient in the acquisition of equipment, buildings or land, the aggregate value of the donated property may be counted as cost sharing or matching.
    • If the purpose of the award is to support activities that require the use of the property, normally only depreciation can be charged.?? However, the fair market value may be allowed, provided that the grant-making component has approved the charges.

Please refer to 2 C.F.R. ?? 200.306 for more information about types of match and match requirements.

How to Calculate Match
Step 1 Award Amount ÷ % of Federal Share = Total (Adjusted)
Project Cost
Step 2 Total (Adjusted)
Project Cost
x % of Recipient’s Share = Required Match
Match Requirement = 80/20 (Federal/Recipient)
Federal Award = $100,000
Step 1 $100,000 ÷ 80% Federal Share = $125,000
Step 2 $125,000 x 20% Recipient???s Share = $25,000

COPS TipCOPS Office Specific Tip

If you have a COPS Hiring Grant, you are required to contribute a local match of at least 25% toward the total cost of the approved grant project, unless waived in writing by the COPS Office.

The local match must be a cash match from funds not previously budgeted for law enforcement purposes and must be paid during the grant award period.

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