Match and Cost Share Tracking for Grants

Many grants require your organization to contribute matching funds or cost share. Tracking these contributions properly is critical for compliance and audit readiness.

This guide explains match requirements and how to track them effectively.

Understanding Match Requirements

What is Match/Cost Share?

Match (also called cost share) is your organization's contribution to a grant-funded project. It demonstrates your commitment and leverages funder dollars.

Types of match:

• Cash match — Your own funds spent on project costs
• In-kind match — Non-cash contributions (volunteer time, donated goods)
• Third-party contributions — Match from other organizations

Common Match Requirements

Funder Type	Typical Requirement
Federal	10-50% of project costs
State	Varies widely
Foundation	Often 1:1 or "significant"
Corporate	Usually flexible

Match Terminology

• Match — Your contribution expressed as ratio (1:1, 2:1)
• Cost share — Your contribution expressed as percentage (20%, 50%)
• Matching ratio — Funder:Grantee (1:1 means equal contributions)

Federal Match Rules (2 CFR 200)

Allowable Match Criteria

Under federal rules, match must be:

1. Verifiable — Documented in your records
2. Not from federal sources — Can't match federal with federal
3. Necessary and reasonable — Would be allowable as direct costs
4. Allowable — Meets cost principles
5. Not used elsewhere — Can't double-count
6. Incurred during grant period — Timing matters

In-Kind Valuation Rules

Federal grants have specific valuation requirements:

Volunteer time:

• Unskilled: Federal minimum wage or your normal rate
• Skilled: Rate consistent with similar services in your area

Donated goods:

• Fair market value at time of donation

Donated space:

• Fair rental value for similar space

Types of Match Contributions

Cash Match

Your unrestricted funds spent on:

• Salaries not charged to the grant
• Equipment purchases
• Supplies and materials
• Contracted services
• Other direct costs

Documentation: Same as grant expenditures (invoices, payroll records, etc.)

In-Kind Contributions

Non-cash contributions including:

Professional services:

• Legal advice (valued at market rate)
• Accounting services
• Consultants working pro bono

Volunteer time:

• Program volunteers
• Board member time on project
• Professional volunteers

Donated goods:

• Equipment donations
• Supplies and materials
• Software licenses

Donated space:

• Meeting rooms
• Office space
• Storage areas

Third-Party Contributions

Contributions from other organizations:

• Partner organization staff time
• Corporate sponsorships
• Foundation grants specifically for match

Tracking Cash Match

Identify Match Expenses

Create a system to flag expenses that count as match:

In QuickBooks:

• Create a "Match" tag or Class sub-class
• Or use a memo field consistently
• Or maintain a separate match log

Required information:

• Expense description
• Amount
• Date incurred
• Grant it matches
• Documentation reference

Sample Cash Match Log

Date	Description	Vendor	Amount	Grant	Documentation
1/15	Program Coordinator salary (non-grant portion)	Payroll	$2,500	Grant A	Payroll register 1/15
1/22	Program supplies	Office Depot	$350	Grant A	Invoice #12345
2/1	Professional development	Training Inc	$500	Grant A	Invoice, registration

Reconciling Cash Match

Monthly, verify:

• Total match provided to date
• Match required to date (based on spending rate)
• Any shortfall to address

Tracking In-Kind Match

Volunteer Time Tracking

Create a volunteer log capturing:

• Volunteer name
• Date
• Hours
• Activity description
• Rate used
• Total value

Sample format:

Date	Volunteer	Hours	Activity	Rate	Value
1/10	J. Smith	3	Youth mentoring	$15/hr	$45
1/12	Dr. Brown	2	Pro bono legal review	$250/hr	$500
1/15	M. Jones	4	Event setup	$15/hr	$60

Donated Goods Tracking

For each donation:

• Donor name
• Date received
• Description
• Quantity
• Fair market value
• Source of valuation
• Grant applied to

Valuation documentation:

• Comparable prices (catalogs, websites)
• Professional appraisals
• Donor's cost basis (with explanation)

Donated Space/Services

Track:

• Provider name
• Dates of use
• Description
• Fair market value
• Comparable rate documentation

Match Timing and Ratios

Match Timing Requirements

Most grants require match to be:

• Incurred during the grant period
• In proportion to spending (not all at end)
• Documented before final report

Calculating Match Ratios

If grant requires 1:1 match for $100,000 grant:

• Funder provides: $100,000
• You must provide: $100,000
• Total project: $200,000

If grant requires 20% cost share:

• Total project: $100,000
• Funder provides: $80,000
• You must provide: $20,000

Tracking Match Rate

Monitor match ratio throughout the grant:

Quarter	Grant Spending	Match Required (1:1)	Actual Match	Status
Q1	$25,000	$25,000	$28,000	On track
Q2	$30,000	$30,000	$27,000	Behind
Q3	$25,000	$25,000	$30,000	On track
Q4	$20,000	$20,000	$15,000	Behind
Total	$100,000	$100,000	$100,000	Met

Common Match Mistakes

Mistake 1: Double-Counting

Using the same expense as match for multiple grants.

Fix: Track match commitments by grant; each dollar counts once.

Mistake 2: Federal Matching Federal

Using federal grant funds as match for another federal grant.

Fix: Only use non-federal sources for federal match.

Mistake 3: Undocumented In-Kind

Claiming volunteer time with no records.

Fix: Implement volunteer tracking from day one.

Mistake 4: Improper Valuation

Overvaluing in-kind contributions.

Fix: Use documented, defensible rates.

Mistake 5: Timing Issues

Match expenses outside the grant period.

Fix: Monitor timing; only count expenses during grant period.

Reporting Match to Funders

Standard Report Elements

Most funder reports request:

• Total match required
• Match provided this period
• Cumulative match to date
• Match remaining

Federal Financial Reports (SF-425)

Box 10 sections:

• Recipient share of expenditures (your match)
• Federal share of expenditures (grant funds)

Supporting Documentation

Keep readily available:

• Match logs (cash and in-kind)
• Volunteer sign-in sheets
• Donation acknowledgment letters
• Valuation documentation

Match in QuickBooks

Tracking Approaches

Option 1: Class-based

• Create Classes for each grant
• Add "Match" sub-class under each
• Tag match expenses appropriately

Option 2: Memo field

• Use memo to note "Match for Grant A"
• Run search to compile match
• Less reliable than classes

Option 3: Separate tracking

• Maintain match log outside QBO
• Reference QBO transaction IDs
• More work but flexible

Reporting Match

Run reports filtered by match class:

• P&L by Class (filter to match classes)
• Custom reports with match columns

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GrantLink tracks match requirements alongside grant spending, making it easy to monitor ratios and document contributions for funder reports. See how it works.