Federal Grants: How to Calculate Local Match

Some federal grants provide a portion of the total funds necessary to operate a project and require recipients to match the federal share of funding with local support (matching funds). The Administration for Children and Families (ACF) provided instructions and examples to applicants in a recent competition on how to calculate the amount of match required for federal funding.

The following instructions are reprinted from the ACF, Administration on Children, Youth and Families, Regional Partnership Grants to Increase the Well-Being of, and to Improve the Permanency Outcomes for, Children Affected by Substance Abuse, HHS-2012-ACF-ACYF-CU-0321, pages 10-12:

The authorizing legislation outlines a number of specific requirements for funds awarded under this FOA, including the following: (1) the annual Federal award may not exceed $1,000,000; (2) the annual Federal award may not fall below $500,000; (3) the grant period may be no less than two years and no more than 5 years; (4) upon request by the grantee, the Secretary of HHS may extend the grant period by up to two years; (5) the grantee’s required match must increase over the course of the grant period; and (6) legislatively authorized funding levels for this grant program remains the same in each year at $20 million.

Grants will be awarded for a 5-year period. Award amounts are to be proposed by the applicant and must fall within the legislative guidelines (no greater than $1,000,000, no less than $500,000). The tables below detail the match percentage applicants are required to calculate in their program match based on award amount.

Table A: Federal/Grantee Share

Fiscal Year

2012

2013

2014

2015

2016

Federal Share

85%

85%

80%

80%

75%


Applicants are to detail the match amount, as well as detail the proposed match source.

Match can be calculated by using the Federal Share (award) divided by the percentage of Total Project Cost minus Federal Share. A sample is as follows:

With a match of 15%, and Federal share of 85%, a $100,000 Federal grant:

$100,000 divided by 85% = $117,647

$117,647 minus $100,000 = $17,647

Below are tables with ceiling and floor amounts for applicant consideration:

Table B: $ 1,000,000 Award Amount

Fiscal Year Federal Share Federal Award Grantee Share Grantee Match Total Program Funds (Federal Award + Grantee Match)
2012 85% $1,000,000 15% $176,470 $1,176,470
2013 85% $1,000,000 15% $176,470 $1,176,470
2014 80% $1,000,000 20% $250,000 $1,250,000
2015 80% $1,000,000 20% $250,000 $1,250,000
2016 75% $1,000,000 25% $333,333 $1,333,333

Table C: $ 500,000 Award Amount

Fiscal Year Federal Share Federal Award Grantee Share Grantee Match Total Program Funds (Federal Award + Grantee Match)
2012 85% $500,000 15% $88,235 $588,235
2013 85% $500,000 15% $88,235 $588,235
2014 80% $500,000 20% $125,000 $625,000
2015 80% $500,000 20% $125,000 $625,000
2016 75% $500,000 25% $167,000 $667,000
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