What Is Grant Stacking, Pairing, Hedging, and Scaling?

Successful applicants navigate the complexity of the grant funding landscape by planning ahead, thinking strategically, and making funding decisions that are proactive and adaptable.  

With the right planning, applicants can use strategies like grant stacking, pairing, hedging, and scaling to reduce out-of-pocket costs, stretch funding dollars further, and boost the odds of success. These approaches take coordination and foresight, but when used effectively, they can unlock more funding and make ambitious projects possible.  

Continue reading to learn more about what each strategy means, what risks to avoid, and how to use grant stacking, pairing, hedging, and scaling to your advantage.  

What Is Grant Stacking?

Grant stacking is when an applicant combines multiple funding sources to cover the same project scope, with each grant program contributing funding for different portions of the total cost. Rather than relying on a single grant to fund an entire initiative, the applicant secures funding from multiple programs that collectively reduce the total out-of-pocket contribution required.

By stacking various sources of funding, the applicant can tailor each request to fit within the maximum funding limits of each program. This avoids exceeding any one program’s cap and can reduce the applicant’s required cost share. In some cases, requesting less than the maximum may also improve the odds of approval, as funders aim to distribute their budgets among as many eligible applicants as possible.

Example:

Imagine a municipality is building a new energy-efficient community hall. They apply to Grant A, a federal infrastructure program offering a 50/50 cost share for site preparation and construction. To reduce their 50% match, the municipality also applies to Grant B, a provincial green infrastructure program that supports renewable energy upgrades. Grant B covers the cost of adding energy-efficient components, which are part of the total project scope.

Stacked together, these grants cover more of the project’s total cost than one grant alone, allowing the applicant to contribute less. If the new building costs $1 million and both grants are 50/50 cost-share programs, the municipality could secure $500,000 from Grant A and $250,000 from Grant B. The remaining $250,000 would be their responsibility — reducing their contribution by half through effective stacking.

It’s essential to note that stacking has limitations depending on the funding program. Stacking is only allowed when all involved programs permit it. Applicants must be transparent about all confirmed or anticipated funding sources to ensure no costs are claimed twice.

Some programs prohibit stacking entirely, while others impose caps on how much of a project can be financed by government sources. For example, some province-based programs restrict stacking with other provincial sources, even if federal funding is allowed. Stacking is often capped so that no more than 75% of total project costs can come from combined government sources. Still, on ambitious projects, stacking can significantly reduce the applicant’s contribution, potentially saving hundreds of thousands of dollars.

What Is Grant Pairing?

Grant pairing is when an applicant secures funding from multiple programs to support different aspects of a single project, typically with each program aligned to a separate objective or outcome. Unlike stacking, which layers funding toward the same cost share, pairing combines complementary programs to fund distinct parts of a broader initiative.

Pairing is especially useful for multi-phase projects or when programs are sector-specific.

Example:

Suppose a business is building a new advanced manufacturing facility. They apply to Grant A, a capital funding program, to support equipment purchases and installation. Separately, they apply to Grant B, a workforce development grant, to train employees who will use the new technology.

While both grants support the same overarching project, the new facility, they fund different budget lines. Grant A supports capital investment, while Grant B supports skills development.

Because each grant serves a distinct purpose, costs are less likely to overlap. Pairing generally avoids the same restrictions associated with stacking (such as government funding caps). However, careful budgeting is still essential to ensure costs are clearly segmented and justified in each application. Claiming the same cost across two programs known as double-dipping, remains strictly prohibited.

What Is Grant Hedging?

Grant hedging is a strategic approach in which an applicant submits the same project and costs to multiple funding programs, knowing that not all applications may be successful and only one will be accepted. Like hedging a bet, this tactic keeps options open.

Example:

A municipality plans to replace aging stormwater infrastructure. They apply to Grant A, a federal climate resilience program, and Grant B, a provincial infrastructure fund, both of which fund similar project types. If both applications are approved, the municipality selects the one that’s the best fit and declines the other. If only one is approved, they move forward with it.

Hedging does not mean accepting duplicate funding for the same costs. Rather, it improves the odds that at least one application is successful.

This approach is especially valuable when applying to competitive programs with uncertain approval outcomes.

Expert Tip:
“If both programs allow it, hedging doesn’t always mean picking one or the other. With careful planning and clear cost allocations, both approvals can be used — turning a hedge into a stacking opportunity, provided each program only funds eligible and distinct costs.”

What Is Grant Scaling?

Grant scaling is a flexible funding strategy where an applicant designs a project with a variable scope, allowing it to expand or contract depending on available funding. Rather than submitting an all-or-nothing proposal, the applicant presents a base project and identifies potential add-ons.

Example:

A school board applies for funding to replace 15 playground structures for $200,000. This is their base project. In the same application, they state that the project can be expanded to include a splash pad, increasing the total to $400,000. The splash pad is the scalable component, a valuable addition but not essential to core project outcomes.

Scaling works both ways. If the full request is not approved, the applicant may still receive partial funding and deliver the core project. Conversely, if more funding becomes available, the scope can grow. This tiered approach helps applicants appear flexible, prepared, and lower-risk, improving their odds of success.

Bringing It All Together

Let’s look at how stacking, pairing, hedging, and scaling can work together.

A mid-sized manufacturing company plans a $2 million facility expansion. Like most businesses, they can’t cover the full cost out of pocket.

• Stacking: They apply for a federal manufacturing grant for automation equipment and a provincial clean energy program for solar panels and HVAC upgrades. Each grant funds different expenses, stacking them reduces the total cost share.

• Pairing: They apply for a workforce development grant to train staff on the new equipment. It supports a separate aspect of the project, training, and complements the capital funding.

• Hedging: While waiting on the federal grant, they also apply for a smaller regional grant that covers the same equipment. If both are approved, they’ll choose the better fit. If not, the regional grant serves as a fallback.

• Scaling: In each application, they outline a base project for $1.2 million and a scaled-up version for $2 million. This flexibility shows readiness to deliver impact even with partial funding.

Together, these strategies help the business reduce its required contribution, increase resiliency, and improve the likelihood of receiving support.

Risks and Compliance Tips

Understanding these strategies is powerful, but staying compliant is critical. Keep these best practices in mind:

• Read each program’s guidelines thoroughly. Pay close attention to eligible costs, stacking caps, and funding limits from other sources.

• Plan ahead. Assign specific expenses to each grant rather than splitting categories to avoid confusion in reporting.

• Keep detailed records. Track all expenditures and match them to their respective funding sources.

• Watch your timelines. Some programs have strict start and end dates. Delayed stacking approvals could slow project rollout.

• Stay transparent. Always disclose other funding sources during the application process.

• Monitor reporting obligations. Each program will have its own cadence for claims and progress reports.

Final Thoughts

Mastering grant stacking, pairing, hedging, and scaling can give your organization a strategic edge in today’s funding landscape. These tools reduce out-of-pocket costs, add flexibility, and help maximize your funding outcomes.

At GrantMatch, we specialize in building winning strategies, writing strong applications, and guiding organizations through every step — from securing approval to reporting and compliance.

Let’s turn strategy into funding.
Connect with a GrantMatch expert today and get more from your next project — with less out-of-pocket cost.

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