No requirement of matched funding: Overview, definition, and example
What is "no requirement of matched funding"?
The "no requirement of matched funding" clause in an agreement means that one party is not obligated to contribute an equivalent or matching amount of funds to a project, grant, or investment. Typically, some funding programs or agreements require the recipient to match a portion of the funding provided by another party (such as a government or investor). However, with this clause, the party receiving the funds is not required to provide any matching contribution. It allows for greater flexibility, as the recipient can access the full amount of funding without needing to secure additional funds on their own.
In simpler terms, it means that you don’t have to come up with an equivalent amount of money to match the funding you are receiving.
Why is "no requirement of matched funding" important?
The "no requirement of matched funding" is important because it reduces the financial burden on the recipient, making it easier for businesses or organizations to access funding without needing to secure additional funds. This can be especially beneficial for small businesses or startups that may not have the financial resources to match a funding offer. Without the need for matching funds, the business can focus on using the received funds directly for the intended project or purpose.
For SMB owners, a "no requirement of matched funding" clause can be a great benefit, as it allows them to access financial support without needing to find or commit additional capital.
Understanding "no requirement of matched funding" through an example
Let’s say your company is awarded a grant for a new environmental project. The terms of the grant state that the funder will provide $100,000, and there is no requirement of matched funding. This means that you don’t have to find an additional $100,000 to match the grant. You can use the entire $100,000 for the project, simplifying the funding process and freeing you from the financial strain of securing extra funds.
In this case, the "no requirement of matched funding" clause helps your business access the full value of the grant without additional financial commitments.
Example of a "no requirement of matched funding" clause in a contract
Here’s an example of what a "no requirement of matched funding" clause might look like in an agreement:
“The recipient of the grant is not required to provide any matched funding or additional financial contribution to access the full amount of the grant. The funds will be provided without the obligation to secure or contribute an equivalent amount.”
Conclusion
The "no requirement of matched funding" clause is a beneficial provision that allows businesses or organizations to access full funding without needing to secure additional matching funds. For SMB owners, this clause can make it easier to obtain financial support, especially when there are limited resources or challenges in finding matching funds. By including this clause in funding agreements, businesses can reduce financial strain and focus more on the execution of their projects or initiatives.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.