The 20% match, and how to prove it.

The rule

Section 640(b) of the Head Start Act limits the federal share of a program's costs to 80 percent, unless a waiver is granted. The other 20 percent, the non-federal share or match, must come from somewhere else. It can be cash or in-kind, "fairly evaluated, including plant, equipment, or services."

45 CFR 1303.4 restates the 80/20 split. A program that doesn't obtain and document its match risks having federal funds disallowed.

What counts

• Cash from non-federal sources: local government, foundations, businesses, individual donors.
• Donated goods: classroom supplies, books, food, furniture, equipment.
• Volunteer time: parents in the classroom, community members, professionals donating services.
• Donated space: a classroom, office or playground provided free or below market rent.

A contribution can't be counted toward the match of another federal award, and a volunteer paid under another federal grant can't be counted.

How to value it

Under 2 CFR 200.306, contributions only count if they're verifiable from your records:

• Donated goods at fair market value at the time of donation, never more.
• Volunteer services at the rate you'd pay for the same work, plus reasonable fringe benefits if appropriate.
• Donated space at fair rental value, documented with a supportable method.

What to keep

• For volunteers: a log with date, name, the activity, where it happened, hours (many programs use 15-minute increments) and the rate used, signed.
• For goods: who gave what, when it was received, the value and how you arrived at it.
• For space: the agreement and how the rental value was set.
• For everything: proof it benefited the Head Start program and isn't counted anywhere else.

Appeals board decisions show what goes wrong: in-kind amounts without backup and donated space claimed without a current appraisal have both been disallowed.

Where the match shows up

• SF-425 Federal Financial Report, filed three times per budget period: lines for the recipient share required, the share spent so far and the share still to be provided.
• Monthly financial statements to the governing body and Policy Council.
• The Program Information Report (PIR), which counts your volunteers.
• Your annual report to the public, which lists funds received by source.

How Donorly helps today, and what's coming

Donorly records the donated goods behind your match: a wishlist per classroom or site, pledges with drop-off times, items received with an estimated value and date, and a receipt for every donor. Child and family data stays in your Head Start data system.

Volunteer hours with sign-in, a rate and sign-off, and a match report by budget period, are coming soon. If you'd like to shape them, book a walkthrough.