 Matching , also referred to as “ cost sharing ” , is a requirement for the recipient to provide contributions or donations ( usually non @-@ federal ) of a specified amount or percentage to supplement federal assistance received . In other words , when the recipient participates in a federal program ( e.g. it receives federal assistance ) and an operating budget is prepared , the federal government may require the recipient to provide contributions to cover a portion of that program ’ s operations . The matching requirement is based on the assertion that total program expenses are 100 % and that , although the federal government provides assistance for most of those expenses , the recipient must still cover a portion of them . Such proportion is solely decided by the federal government , but usually the recipient decides how that contribution is provided and to which expenses , so long as the contribution is verifiable , generally does not originate from another federal program , and is considered in the operating budget . The expenses must be necessary and reasonable , allowed under cost principles ( see B section above ) , and not used for another federal program . Matching may be in the form of contributing the recipient ’ s own funds or money to suffrage program allowable costs ( e.g. , paying program utility bills , paying part of program personnel payroll , etc . ) or , in some cases , in the form of in @-@ kind contributions , which are donations of non @-@ monetary objects such as services , materials , property , etc . 
