Matching Fund

A matching fund (also a matching grant in the USA ) is a form of complementary financing for cultural institutions or non-profit organizations . What is meant by this is that the promotion of public funds is inextricably linked with the acquisition of private funds of a certain amount.

purpose

This type of financing is used to support certain projects such as start-up financing, real estate acquisition or project financing with foundation funds . The foundation will check whether the application for a matching fund corresponds to the purpose of the foundation and the funding framework set out in the foundation statutes.

This form of financing, a matching fund, can be used by a non-profit association , a human initiative, a private agency or a non-profit GmbH . The foundation would like to ensure a broader participation in a project and bring many people together for this idea or purpose.

Example : A donor (bank, patron, etc.) and a non-profit association agree to collect donations in a predetermined amount. If the set goal is achieved in the predetermined period, the donor pays the same amount or double the amount depending on the agreement.

advantages

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The advantages of such a system are first and foremost the relief of the public purse. In addition, projects can be funded that would otherwise not be possible. Overall, broad acceptance in society can be assumed, since the type of financing appears more equitable .

execution

In the USA

In the US , this is a very common form of cultural funding that is controlled by the National Endowment of the Arts . This institution determines which institutions and projects get the comparatively little money and contributes a maximum of fifty percent of the total costs to a project (usually the funding is 1: 3 - 1 government dollar to 3 private dollars). Such a system aims to stimulate private funding of culture. It works as a kind of start-up funding.

In Germany

In Germany, such a type of financing is only very hesitant. In addition, the procedure is reversed here. The state does not stipulate that a certain amount should be given if a certain amount is raised privately, but rather it gives a commitment to top up each newly made private donation in a certain ratio. This is a special kind of incentive, as the funding is open to the top.

literature

• Görsch, Markus: Complementary cultural financing. The interaction of state and private grants to finance art and culture. Berlin 2001, ISBN 3898253309