Matching partnerships
Matching occurs when a pledge or commitment of resources is used to encourage other donors to commit themselves to the effort or to increase their current support. The objective of a matching approach is to enlist partners in a specific program and to multiply the resources available for this program. Matching is a strong tactic because it attracts attention and creates momentum among those who could be involved in supporting a given effort. Pledging the foundations' funds on the condition that there are matches can stimulate others to move from discussion to action in committing their resources.
Although this kind of partnership is generally understood to involve funds, matching can also be used to mobilize non-monetary resources, such as goods, labor, or expertise.
There are different types of matching:
Matching is not necessarily on a 1:1 basis. The Soros foundations should recognise that not every matching partner can provide equal amounts of resources, and not every partner can provide a match quickly.
It is important to assess the capacity of the matching partner to contribute. A $10 contribution of a family or a $100 contribution of a community organization might be equivalent to a $10,000 grant from the Soros foundations. Likewise, a $1 million commitment from the Soros foundations might be considered equivalent to a $10 million commitment from the World Bank or European Union.
For reporting and publicity purposes, it is important to document the matching partners and their contributions. There should be no hidden partners, unless a donor wishes to remain anonymous. In the case of pooling funds, it is clear who has given what. In the other types of matching, it may be necessary to collect and compile information about the matches. In-kind contributions can be valued and reported (for example, the number of hours or equivalent wage cost of volunteer labor, or the market value of donated goods and services). Valuing in-kind contributions in monetary terms can give a more accurate picture of the success of a matching effort. Valuing or reporting matching partnerships in U.S. dollars or German marks increases others' understanding of the impact of your effort.
National foundations that are seeking a match should be aware of their working context. Other donors may see themselves as already matching your foundation's efforts through their current funding commitments or programs. In a successful matching effort, all partners win. Each partner is able to report and publicize that its own commitment is being matched and has leveraged the resources of other donors.
Partners strive to commit equal or equivalent amounts of funds to a common pool of resources for a specific program. The funds may even be allocated to a joint bank account. This pool of funds is then used to implement the partnership program.
Partners agree on a common objective but decide to manage and disburse their funds separately. This arrangement allows donor partners to use their own financing, administrative, and governance structures. Parallel funding may be the most sensible or feasible arrangement when the Soros foundations are seeking to match funds with large, more rigid, or bureaucratic donors.
Financial contributions by a donor are complemented by non-monetary resources of other organizations or individuals. This arrangement works when one donor is ready to supply funding to a project, and other partners who do not have financial means can be mobilized to contribute other kinds of resources. These resources might be technical expertise, volunteer work, materials, or use of facilities.
A lead partner takes a direct, proactive approach to involve others in a project and mobilize their resources. A fund-raising challenge can be used to attract partners such as businesses, community-based organizations, individuals, or others. The partners might contribute money, time, goods, or endorsements. This arrangement requires a strong incentive to participate and to be associated with the effort. A strong publicity strategy and campaign is usually the driving force of such a partnership. A national foundation challenging others to provide funding will almost certainly raise the public visibility and others' expectations of the foundation.
