Co-financing

Co-financing (or "matching funds") is the share of a project's cost that your
municipality contributes alongside the donor's grant.

It can be CASH (budget allocation) or IN-KIND (staff time, land, buildings,
equipment, or services valued at fair market rates). Donors require it for two
reasons: it proves your commitment — you have your own resources at stake — and
it reduces their risk by spreading the financial burden.

Even a modest contribution of 10–20% materially improves approval odds, and many
calls set a minimum co-financing ratio you must meet to be eligible. Document the
source and value of every contribution; auditors will check that in-kind figures
are realistic and that cash commitments are actually budgeted.