3.7. Co-funding / Match funding
Co-financing is the contribution that a Member State or another public or private body makes to a project that also receives EU funding.
Each fund (ESF+, ERDF, Interreg) has its own set of rules and guidelines, and co-financing rates can differ depending on the specific program and region. The EU funding cannot cover the total cost of the project.
The percentage of EU funding can vary between 50% and 85% of the total eligible costs of a project, depending on the fund, the type of project, and the specific region.
Here are some of the most common forms:
Public funding: This includes contributions from national, regional, or local government budgets.
Private funding: This can come from businesses, non-profit organisations, or private individuals who have an interest in the project.
Own resources: The organisation implementing the project can use its own resources as co-financing. This can include cash, but also other forms of contributions, such as the time employees spend on the project.
In-kind contributions: These are non-cash inputs that can be given a cash value. They could include goods, services, or time donated to the project. For example, if a company donates equipment to a project or a person volunteers their time, this can be counted as in-kind co-financing. Note, however, that the eligibility of in-kind contributions as co-financing can depend on the specific rules of the fund and the project.
Loans, equity, and other repayable forms of finance: For some projects, co-financing can come in the form of loans or equity that is expected to be repaid or earn a return.
Income generated by the project: In some cases, if a project is expected to generate income (for example, through sales of products or services), this income can be considered part of the co-financing.