Matching funds
Encyclopedia
Matching funds, a term used to describe the requirement or condition that a generally minimal amount of money or services-in-kind originate from the beneficiaries of financial amounts, usually for a purpose of charitable or public good
.
, a famous African-American educator, had a long-time friendship with millionaire
industrialist Henry Huttleston Rogers
who provided him with substantial amounts of money to be applied for the betterment and education of black Americans in the late 19th and early 20th centuries.
Dr. Washington later wrote that Henry Rogers had encouraged projects with at least partial matching funds, as that way, two ends were accomplished:
Using the matching funds philosophy, after Rogers' death, Julius Rosenwald
and the Rosenwald Fund
continued and expanded the work, eventually funding over 5,000 Rosenwald School
s between 1912 and 1932. During that time, over US$4.6 million additional dollars were contributed by blacks
in the communities responding to the challenge thus presented.
was primarily built with a mix of 90% FHWA funds from the Highway Trust Fund and 10% matching state DOT funds.
candidate is given by federal government
to match the money they have raised personally. Candidates can expect up to US$250 extra from public funds for each contribution from an individual they receive.
This usually only applies to the two main parties; as for third party candidates gaining the benefits of matching funds they must additionally have received 5% of the popular vote in the previous election. Hence the anomaly of Ross Perot
standing as Reform Party
candidate in 1992 and receiving 18% of the vote, yet receiving no matching funds because the Reform Party did not receive 5% of the vote in 1988; whilst Pat Buchanan
, running as the Reform Party candidate in 2000, did receive matching funds despite winning only 0.4% of the vote.
The source of the funds comes from a $3 voluntary checkoff
on the U.S. Income Tax form.
Public interest
The public interest refers to the "common well-being" or "general welfare." The public interest is central to policy debates, politics, democracy and the nature of government itself...
.
Charitable causes
In example, Dr. Booker T. WashingtonBooker T. Washington
Booker Taliaferro Washington was an American educator, author, orator, and political leader. He was the dominant figure in the African-American community in the United States from 1890 to 1915...
, a famous African-American educator, had a long-time friendship with millionaire
Millionaire
A millionaire is an individual whose net worth or wealth is equal to or exceeds one million units of currency. It can also be a person who owns one million units of currency in a bank account or savings account...
industrialist Henry Huttleston Rogers
Henry H. Rogers
Henry Huttleston Rogers was a United States capitalist, businessman, industrialist, financier, and philanthropist. He made his fortune in the oil refinery business, becoming a leader at Standard Oil....
who provided him with substantial amounts of money to be applied for the betterment and education of black Americans in the late 19th and early 20th centuries.
Dr. Washington later wrote that Henry Rogers had encouraged projects with at least partial matching funds, as that way, two ends were accomplished:
- The gifts would help fund even greater work.
- Recipients would have a stake in knowing that they were helping themselves through their own hard work and sacrifice.
Using the matching funds philosophy, after Rogers' death, Julius Rosenwald
Julius Rosenwald
Julius Rosenwald was a U.S. clothier, manufacturer, business executive, and philanthropist. He is best known as a part-owner and leader of Sears, Roebuck and Company, and for the Rosenwald Fund which donated millions to support the education of African American children in the rural South, as well...
and the Rosenwald Fund
Rosenwald Fund
The Rosenwald Fund was established in 1917 by Julius Rosenwald and his family for "the well-being of mankind."...
continued and expanded the work, eventually funding over 5,000 Rosenwald School
Rosenwald School
A Rosenwald School was the name informally applied to over five thousand schools, shops, and teachers' homes in the United States which were built primarily for the education of African-Americans in the early twentieth century. The need arose from the chronic underfunding of public education for...
s between 1912 and 1932. During that time, over US$4.6 million additional dollars were contributed by blacks
Black people
The term black people is used in systems of racial classification for humans of a dark skinned phenotype, relative to other racial groups.Different societies apply different criteria regarding who is classified as "black", and often social variables such as class, socio-economic status also plays a...
in the communities responding to the challenge thus presented.
U.S. federal funding
In the United States, many projects in the various states and communities are partially funded with federal grants with a requirement for matching funds. For example, the Interstate Highway SystemInterstate Highway System
The Dwight D. Eisenhower National System of Interstate and Defense Highways, , is a network of limited-access roads including freeways, highways, and expressways forming part of the National Highway System of the United States of America...
was primarily built with a mix of 90% FHWA funds from the Highway Trust Fund and 10% matching state DOT funds.
In politics
In American politics the term matching funds refers to the money a presidentialPresident of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
candidate is given by federal government
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
to match the money they have raised personally. Candidates can expect up to US$250 extra from public funds for each contribution from an individual they receive.
This usually only applies to the two main parties; as for third party candidates gaining the benefits of matching funds they must additionally have received 5% of the popular vote in the previous election. Hence the anomaly of Ross Perot
Ross Perot
Henry Ross Perot is a U.S. businessman best known for running for President of the United States in 1992 and 1996. Perot founded Electronic Data Systems in 1962, sold the company to General Motors in 1984, and founded Perot Systems in 1988...
standing as Reform Party
Reform Party of the United States of America
The Reform Party of the United States of America is a political party in the United States, founded in 1995 by Ross Perot...
candidate in 1992 and receiving 18% of the vote, yet receiving no matching funds because the Reform Party did not receive 5% of the vote in 1988; whilst Pat Buchanan
Pat Buchanan
Patrick Joseph "Pat" Buchanan is an American paleoconservative political commentator, author, syndicated columnist, politician and broadcaster. Buchanan was a senior adviser to American Presidents Richard Nixon, Gerald Ford, and Ronald Reagan, and was an original host on CNN's Crossfire. He sought...
, running as the Reform Party candidate in 2000, did receive matching funds despite winning only 0.4% of the vote.
The source of the funds comes from a $3 voluntary checkoff
Presidential election campaign fund checkoff
The presidential election campaign fund checkoff appears on US income tax return forms as the question Do you want $3 of your federal tax to go to the Presidential Election Campaign Fund?...
on the U.S. Income Tax form.
External links
- Federal Matching Fund Guidelines
- Federal Matching Funds Explanation provided on BBC website.