Grant Co-Financing
Official Definition & Legal Scope
Co-financing is the proportion of total project costs that the beneficiary must fund through internal resources, private donations, or other compatible grants. Spanish Grant Law strictly prohibits over-subsidization.
- •Ley 38/2003 General de Subvenciones (Artículo 19: Compatibilidad de subvenciones)
- •Real Decreto 887/2006 (Artículo 33)
Co-financing principles and non-profit constraints
Co-financing ensures institutional commitment and prevents cumulative subsidies from exceeding 100% of realized project costs.
Grant guidelines standardly specify maximum funding intensities (e.g., 80%), requiring the remaining 20% in matching funds.
Cash matching vs in-kind contributions
Co-financing may be provided in cash (unrestricted reserves, membership dues) or in-kind (volunteer hours, premises) if explicitly authorized by the call.
All matching funding streams must be evidenced with financial records in the final closeout accounts.
Financial pitfalls in co-financing
Committing matching funds beyond liquid cash reserves, leading to severe operational insolvency.
Combining incompatible EU funding sources for identical expense line items (double funding violation).
How FundingQuarry balances your co-financing plan
FundingQuarry automatically computes mandatory matching fund ratios and flags potential legal compatibility or over-subsidization risks.
Key Regulatory Takeaways
- Total subsidies received can never exceed 100% of realized eligible expenditure.
- Review whether the call permits in-kind contributions or strictly requires cash matching.
- Failure to prove matching fund delivery triggers a proportional clawback of granted funds.
Uncertain how to structure matching fund ratios for your grant budget?
Related Glossary Terms
Official References & Sources
- Ley 38/2003 General de Subvenciones (Artículo 19)
Frequently Asked Questions
Can other public grants count toward matching fund requirements?
Yes, provided neither call explicitly prohibits concurrent funding and the cumulative sum does not exceed 100% of costs.
How is volunteer labor valued as in-kind co-financing?
Only if explicitly authorized, documented with signed timesheets, and benchmarked against sectoral collective wage agreements.
What occurs if actual project execution costs are lower than budgeted?
The awarded grant is proportionally reduced to maintain the approved co-financing ratio.
Want to know which calls fit your organization?
Analyze your profile for free and discover in minutes which grants are worth your time.