Some foundations and government organizations require grant recipients to match the grant funding one-to-one. As an example, if a nonprofit is approved for $10,000, they must have another $10,000 before getting the grant money.
The good news about matching grants is less competition. Many nonprofits will not try for the matching funds. The bad news is that the nonprofit must raise the matching funds.
Most of the time, matching funds cannot be in-kind expenses or money from other grants. The nonprofit must raise the money through donations or events, which is not that hard.
Getting a matching grant is a great motivator to raising money and can be central to a fundraising campaign. People are more likely to give a donation if they know their donation is matched. Like a half-price sale.
But don’t get more than one or two matching grants at a time. Any more than this and too many resources could be used to match the grants. Such as multiple ads and events, which could confuse donors.
When submitting for a matching grant, the nonprofit should have reasonable confidence they can match the grant. A nonprofit is not likely to get another grant if they miss the matching deadline. Also, do not plan on negotiating. Foundations and government organizations are usually bound legally to the guidelines.
Given all this, I would recommend every nonprofit get at least one matching grant. The nonprofit usually has two to three years after grant approval to raise the money and the risk is worth it.
Before I submit for a matching grant, I make sure the nonprofit has at least a general plan on how they will raise the money. That way when the grant is approved, there are no worries, but smiles.