§ 365.13What requirements apply if the State's non-Federal share is in cash?
(a) Except as further limited by paragraph (b) of this section, expenditures that meet the requirements of 34 CFR 80.24(a) through (b)(6) may be used to meet the non-Federal share matching requirement under section 712(b) of the Act if—
(1) The expenditures are made with funds made available by appropriation directly to the designated State agency or with funds made available by allotment or transfer from any other unit of State or local government;
(2) The expenditures are made with cash contributions from a donor that are deposited in the account of the designated State agency in accordance with State law for expenditure by, and at the sole discretion of, the DSU for activities identified or described in the State plan and authorized by § 365.20; or
(3) The expenditures are made with cash contributions from a donor that are earmarked for meeting the State's share for—
(i) Providing particular services (e.g., personal assistance services);
(ii) Serving individuals with certain types of disabilities (e.g., older individuals who are blind);
(iii) Providing services to specific groups that State or Federal law permits to be targeted for services (e.g., children of migrant laborers); or
(iv) Carrying out particular types of administrative activities permissible under State law.
(b) Cash contributions are permissible under paragraph (a)(3) of this section only if the cash contributions are not used for expenditures that benefit or will benefit in any way the donor, an individual to whom the donor is related by blood or marriage or with whom the donor has a close personal relationship, or an individual, entity, or organization with whom the donor shares a financial interest.
(c) The receipt of a grant, subgrant, or contract under section 713 of the Act or a grant, subgrant, or assistance contract under section 723 of the Act from the DSU is not considered a benefit to the donor of a cash contribution for purposes of paragraph (b) of this section if the grant, subgrant, or contract was awarded under the State's regular competitive procedures.
(d) For purposes of this section, a donor may be a private agency, a profit-making or nonprofit organization, or an individual.