In our last article, we discussed Web3 grants in general and how they can help you drive your project forward. Today, let’s dive deeper into one specific one: Matching Grants.

In the crypto space, grants fund projects, research, and development to advance blockchain technology, decentralized applications, and related ecosystems. Recently, more initiatives have been funded around creativity and marketing, as seen by Artizen and Octant. Matching grants are unique because they foster fundraising using a powerful economic incentive: the grantor will "match" the funds raised, typically up to a specified limit. In essence, matching grants are a financial instrument that can align the interests of both donors and recipients by amplifying resources, encouraging collaboration, and leveraging public attention to a project.

Once again, let’s imagine an art gallery seeking to showcase a groundbreaking exhibition. Matching Grants in this context would work like this:

A wealthy art patron says, "For every dollar you raise from the community, I'll contribute an equal amount, up to $50,000." This arrangement serves as a powerful incentive, encouraging the gallery to engage with local art enthusiasts and businesses actively.

In the world of philanthropy and fundraising, Matching Grants operate on the same principle. A donor—often a foundation or major benefactor—pledges to match funds a nonprofit organization raises, typically up to a predetermined limit. This approach doubles the impact of each donation and motivates the organization to broaden its donor base and intensify its fundraising efforts.

The beauty of Matching Grants lies in their ability to:

1. Amplify financial support

2. Encourage community involvement

3. Validate the organization's mission

4. Create a sense of urgency in fundraising campaigns

Thus, the world of matching grants can easily be likened to the collaborative nature of the art scene. Just like creators often work together to create better products or art pieces, matching grants unite various funding sources to amplify assistance for diverse projects. And much like different art styles, there are different kinds of matching grants:

• 1:1 Match | For every dollar raised, the grantor contributes the same amount

• 2:1 Match | Every dollar raised is matched with two dollars of the grantor

• Capped Match | A maximum amount of grants set by the grantor, independent of how much is raised

Another natural side-effect of participating in a matching grant is that if a grant seeker can raise matching funds, this signals their credibility and commitment because it demonstrates that they can engage stakeholders and mobilize resources. Seen from the perspective of a Grantor, matching grants might be a preferable way of supporting recipients because they see it as ensuring strong commitment and broad community support. Therefore, many organizations dedicated to the creative economy offer matching components, recognizing the power of collaborative funding to create more significant and meaningful impact.

If you want to learn more about how ALANAmagazine has been applying with Artizen for Matching Grants, go and read the full story here:

It is important to remember that by embracing matching grants, artists and projects can create a more vibrant and engaging "exhibition" of their work, bringing together diverse supporters and resources to make their creative visions a reality. Matching grants in the Web3 world are particularly impactful because they provide financial assets and create a common sense of shared responsibility between artists, donors, and communities. Matching grants make it possible for Web3 projects to scale, reach broader audiences, and secure long-term viability while promoting creativity and innovation.

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This article was authored by Nils Otter for ALANA.