A matching grant program can be an excellent way for a state to help bring the dream of college closer to less-advantaged state residents. But without a coordinated plan of back-office capabilities and marketing outreach, the "match" can be logistically challenging.

In most cases, a state develops a plan to match a certain percentage of contributions, either with a dollar-to-dollar match or a flat amount. When a grant is awarded, the funds generally are deposited either directly in the account owner's 529 plan account or in a special matching grant account.

Developing the matching grant program itself and putting the internal checks and balances into place are just two of the challenges facing a state considering introducing matching grants. At Upromise Investments, we have experience in implementing, promoting, and monitoring matching grant and related outreach programs.

Even before a program has begun, we work closely with our state clients to determine business requirements and to develop an application/enrollment process that is easy to implement. Account confirmations and statements must be coordinated between the participant's own account and the matching grant account. A working system must also determine which withdrawal restrictions, if any, should be applied to a matching grant account. The account structure offered by the Unite platform lets us efficiently track contributions made by 529 participants, non-participants, and the matching grant contributions made by state agencies.

Communications is the other side of the coordination equation for matching grants. No matter how well the back-office systems are working, if no one knows about a state's matching grant program, its chances of success are limited. A coordinated marketing plan, including online promotion, public relations, and direct messaging to 529 plan account owners can open the pipeline to applicants.