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Many donors insist that projects provide details on matching contribution in their proposal budgets. It is usually 10-20% of the total budget you propose.
Matching contributions are financial contributions made by the NGO to the overall grant of the project. If the donor agency is giving 80% of the total funding of the project you have proposed, under the matching contribution, it expects the NGO to arrange the rest of the 20% from elsewhere. This 20% of funding can be arranged either from NGO’s own resources or from other donor agencies or from the community itself.
Now many small NGOs fear applying to such opportunities where donors demand matching contribution because for them even arranging 20% can be very difficult. However, it is not as difficult as the donor makes it to be. There are several ways in organizing this matching contribution even if you don’t put in a single penny of money into the project. A more detailed explanation on this is given at this link.
