Cost Sharing

What is cost sharing/matching and why does the sponsor require it?

Cost sharing and matching are two variations of a common concept: That the institution share some amount of cost in the grant program with the sponsor. Not all sponsors require it, but those that do typically do so to see a demonstrated commitment on the part of the College to support your sponsored activity. Note: The College requires preapproval of cost sharing commitments, and remember that any any amount included in your future awarded budget must be accurate, documented and auditable. Here are the differences between cost sharing and matching:

Cost Sharing

The College provides a percentage of a contribution that helps achieve the total requested award for the sponsored activity. For example, if you request $100,000 from the sponsor and the sponsor requires a 50% cost share, then only $50,000 would actually be supplied by the sponsor. The College would provide the other $50,000. Your total award is $100,000.

Cost Matching

The College provides a contribution that matches to a percentage - and consequently goes above - the total requested award for the sponsored activity. For example, if you request $100,000 from the sponsor and the sponsor requires a 50% cost match, then $100,000 will be supplied by the sponsor and $50,000 by the College. Your total award is $150,000.

There are also three ways for institutions to meet a cost sharing/matching requirement:

"In-Kind" Contributions

If allowed by the sponsor, in-kind contributions are contributions and use of College assets at no or less than usual cost, and in place of money. For example, in accordance with a department chair, the Dean, the appropriate Vice President and ORGA a faculty member may seek release time to work on sponsored activity. An in-kind contribution would be granting that release time without asking for compensation from the sponsor, requiring the College to absorb the equivalent cost. In fact, granting personnel time without a corresponding request in the proposal budget is a common example of in-kind contributions. F&A costs may also be waived, partially or fully, as an in-kind contribution but an F&A cost waiver requires prior approval from ORGA staff.

Cash Contributions

Cash or income contributions are actual monetary amounts used to provide the match in a cost share. In-kind contributions are much more common than an actual cash match.

External Contributions

In some cases, sponsors ask that contributions to a cost share come from sources outside the College. This is typically to ensure a program's financial strength, and providing proof of such external funding shows effort on the part of its members to meet the program's needs. For programs with more than one funding source or being supported by simultaneous grants, those other grants may typically be used to meet a cost sharing requirement. In the case of Federal grants, other Federal sponsored programs may not be used to help fulfill a match requirement.

Subcontracting