When you apply for a grant from one of the EU funding programmes it is usually required to contribute to the project costs with some of your own resources, often between 20 and 50% of the overall project budget. Securing an organisation’s required co-financing for an EU project can be challenging, especially for the non-profit sector. Check these 8 effective approaches how you can find the necessary funds.
The co-financing rule for EU projects is one of the essential principles for EU funding programmes. Co-financing requires that part of the funding for a project comes from sources other than the EU, such as national, regional or private funds. One of the reasons is that co-financing should leverage additional financial resources and thereby increase the total amount available for projects.
Moreover, by requiring beneficiaries to contribute own funds, the co-financing principle aims to ensure greater ownership and to encourage efficient planning and cost management. Identifying potential cost savings in the project budget can reduce the overall co-financing burden. On the other hand, your financial planning should not be too tight neither. Additional unexpected expenses during the implementation of the project would mean that you have to bear these all by yourself as no additional contribution from the EU will be paid for extra costs when you are going over the agreed overall project budget.
Either way, you will need to be sure to have the required own funds for the project. You can uncover co-financing by implementing the following approaches.
You will usually start your search for co-financing in your own organisation. To begin with, you can analyse which possibilities you have yourself. For instance, you can check if a budget reallocation would be possible, such as allocating existing internal budgets from other departments or activities to support the new project. Or, if you generate profits from existing business operations or services, these could support the project. Possibly existing financial reserves which your organisation has set aside for strategic projects could be utilised for the co-financing of the new EU project.
Financial support from national and regional governments or local authorities could be a source of co-financing. You can research national and regional funding programmes that could provide the required co-financing. These might include grants from government ministries, regional development agencies or local authorities. One example for a national programme which is specifically aimed at co-financing EU projects is the Transnational Cooperation Programme of the German Federal Ministry of Housing, Urban Development and Building which supports Interreg B (cooperation over larger transnational territories or around sea basins) projects with thematic focuses on particular national priorities such as sustainable and integrated spatial development.
In order to acquire co-financing from public authorities, you can contact relevant national, regional or local authorities to discuss your project and enquire about potential co-financing opportunities. Your request needs to be tailored to the specific requirements and priorities of the authorities. Each authority usually has their own procedures to be able to allocate (partial) financing for projects. When contacting them, be prepared to outline at least the objectives, activities, timeline and expected outcomes and impact of your project.
Seeking funding from private foundations, trusts or philanthropic organisations that support similar initiatives is another option. Search for example in relevant directories to identify funders in your country that align with your organisation’s mission and project objectives. Ensure that your organisation and project meet the eligibility criteria for funding from each foundation, trust or philanthropic organisation.
You could engage with corporate sponsors who might be interested in supporting the project through direct contributions. Such private donors could be all kinds of companies, for example local, smaller or big companies, depending on the scope of your planned project. Bigger companies often have Corporate Social Responsibility (CSR) programmes and dedicated CSR departments. In any case you will have to determine if the sponsoring company’s philosophy matches with your values and objectives and what they would expect in return for giving you a financial contribution.
Asking for donations from individuals is another option to find co-financing for your EU project application. You could start with existing networks, for example your current supporters, volunteers, board members and their networks or Alumni donations (for educational institutions).
Additional approaches are to set up an online donations tool on your website, launch an email campaign for your mailing list and publish your call for donations on social media.
Launching a crowdfunding campaign is a way to gather smaller contributions from a large number of individuals. When setting up a crowdfunding campaign for your planned project, you will need to select a platform that aligns with your target audience and has a good reputation for supporting similar campaigns. There will be some fees to be paid to the platform. Moreover, you will need to set a realistic financial target based on the project’s budget for the pre-defined campaign period.
In certain cases, you could secure a loan from a bank. If you are a commercial company, you can consider this as an option if the conditions for the loan such as the cost for the interest rate are reasonable and if you are sure to be able to repay the loan. For non-profit entities bank loans are usually not a viable option to finance projects.
Another approach to tackle the co-financing requirements could be in-kind contributions. For example, services or goods which have been donated by third parties for the purpose of the project, can be counted towards the co-financing.
Working with volunteers can be another solution. Many non-profit organisation anyway already work with volunteers on a regular basis. Some programmes as for example the Citizens, Equality, Rights and Values (CERV) Programme, the LIFE Programme (EU Programme for the environment and climate action) and Erasmus+ Programme (education, training, youth and sport) allow that volunteer work can in principle be counted towards the organisation‘s own contribution, when the published Call for Proposals allows it. According to the EU Financial Regulation (Art. 190), up to 50% of the co-financing may be covered through the equivalent cost of the volunteers’ work.
By employing a combination of the above 8 strategies, your organisation can secure the necessary co-financing for an EU project, ensuring that you meet the funding requirements.
Last but not least, some additional tips how to approach your co-financing search in a strategic manner:
Certainly, looking externally for co-financing is an extra effort with an unknown outcome. However, when acquiring contributions from other external sources, it is as well a chance to build lasting relationships with these supporters. Once they know you, have gained trust in your organisation and appreciate your activities, they could be mobilised later-on again when you will be planning further projects.
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Author: Astrid Mechel
https://eufundingconsulting.eu
Hello, I am Astrid Mechel and I work (for the most part) with small and medium sized organisations who aim to access EU funding. It is my goal to help discovering suitable EU project funding possibilities and to provide support to submit a high-quality grant application. My main thematic focus is on grants for research and innovation, environmental sustainability as well as on social inclusion and participation.
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© Astrid Mechel, 2024
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