Partnership and matched funding
Partnership funding is when you make a contribution to go with your grant application. For example, if your total project costs £50,000, you might be asking for a grant of £40,000 and will supply the remaining £10,000 from your own or other sources.
The concept of partnership funding goes by different names: some people call it match funding or matched funding, it could also be called external funding sources. The premise is generally the same. Check with the Lottery funder you wish to apply to about their partnership funding requirements.
For the purpose of this information sheet, partnership funding does not refer to a requirement for you to work in partnership with another organisation to deliver your project; it refers to the contribution (cash or in-kind) that you may need to provide with your application.
How much partnership funding is required?
Different Lottery funders have different rules on the level of partnership funding that may be required. The amount of partnership funding needed will vary between funding programmes, and the size of your grant request may affect the level of partnership funding needed. Check with the relevant Lottery funder so that you know what is required. Not all applications will need partnership funding.
For example, under the Heritage Lottery Fund ‘Heritage Grants’ programme, an applicant must supply at least 25 per cent of the project costs themselves if the grant request is for £1 million or more, but under Awards for All (for grants of £500 to £5,000) an applicant does not have to supply any partnership funding at all.
What sort of partnership funding can be used?
There are many different ways to provide partnership funding. This could be cash from your organisation that you have fundraised for; it could be money that has been received from another grant application; it could be support from your local authority; it could be money from European funding.
When you apply, you will need to say where the partnership funding is coming from and whether or not that money is secure.
If your project involves two or more Lottery funders, you will need to show how the funding is for completely separate elements of your project. Two or more Lottery funders cannot fund the same part of a project.
What about contributions in kind?
Some Lottery funders are happy for some of the partnership funding to include contributions in kind. This means non-cash contributions to the project such as equipment, facilities, resources or volunteer time from yours or a partner organisation.
You must check with Lottery funder to whom you are applying as to their rules on contributions in kind. These rules may also vary depending on the grant programme you’re applying to.
How will partnership funding affect a project cash-flow statement?
A cash-flow statement is a forecast which shows when you will receive your income and when you will spend it. If your project income is coming from a number of different sources it is likely to come at different times. Producing a cash flow forecast will help you plan to make sure that you have enough income to cover your expenses at all times.
Will partnership funding affect monitoring arrangements for my project?
Monitoring how you spend your grant is important; when you receive money from the Lottery, you will be expected to account for it. Different funders have different ways of monitoring how you spend your grant, so if you have more than one organisation funding your project, you need to plan for their different monitoring requirements.
Budgeting
With any application you make, you will need to provide a clear and detailed breakdown of the project costs and how they relate to the grant you are requesting. If more than one organisation is funding your project, you will need to be clear in your budget about what each funder is being asked to fund. Please see our information sheet on Budgets for further information.
Top tips
- Always check with the Lottery funder you want to apply to about their partnership funding requirements.
- Most forms of partnership funding are acceptable (cash or in kind) but two Lottery funders cannot fund the same part of a project.
Further help
If you require further help, please read our other information sheets. You may also want to check out our glossary page and helper agencies who may be able to assist you in developing your project. Helper agencies can give you advice and guidance on financial and fundraising issues.
Download partnership.pdf
