Matching funds

Under Matching Fund (in the U.S. also Matching Grant ) is understood as a form of complementary funding for cultural institutions and non-profit organizations. What is meant is that the competition brief public funds is inextricably linked to the soliciting private funds at a certain height.

Purpose

This type of funding will be used to support specific projects, such as start-up financing, real estate acquisition and project financing with Foundation funds. The Foundation is considering whether the application for a Matching Fund is the purpose of the foundation and the conveyor frame, which is defined in the Foundation's statutes.

This form of financing a Matching funds can be both a Non-profit organization, an initiative of people, a free carrier or a non-profit use. The Foundation would like to thus ensure a wider participation on a project and bring together many people to this idea or purpose.

Example: It agree, a financier (bank, patron, etc.) and a non-profit organization to collect donations in a pre-determined height. If the specified destination reached in the predetermined period, the funder pays according to the agreement the same amount or twice the amount of it.

Benefits

The advantages of such a system are first and foremost the discharge of the public sector. In addition, projects that can be funded that would not be possible otherwise. Overall, it must be from a broad acceptance in society, as the type of financing acts fairly.

Implementation

In the U.S.

In the U.S. this is a very common form of promoting culture, which is controlled by the National Endowment of the Arts. This institution determines which institutions and projects get the comparatively small amount of money and contributes a share of more than fifty percent of the total cost to a project in (usually is encouraging but 1:3 - 1 state dollars to three private dollars ). Such a system supports the objective of boosting the private financing of culture. It works as a sort of start-up financing.

In Germany

In Germany such a type of financing is used only very hesitantly. In addition, the procedure is reversed here. The state does not determine to give a certain sum if a certain sum is privately raised, but it is the commitment to increase each newly rendered private donation in a certain ratio. This is a special kind of incentive, as the promotion is open upward.