- Author: Kathleen P Nolan
Cost sharing means that portion of project costs not covered by the funding agency. It includes all contributions, including both cash and in-kind.
When should I cost share?
Cost Sharing is generally discouraged and you should generally cost share only when it is a requirement by the sponsor. If it is a requirement in the funding opportunity then it would be considered Mandatory Cost Share as it is a condition of obtaining an award. Voluntary Committed Cost Sharing is when the University offers resources that are documented and quantified in the proposal, even though it is not a specific requirement of the sponsor. An example of voluntary committed cost share would be including an advisor's effort on the budget, but not requesting any salary. That becomes a binding commitment which the university must provide as part of the performance of the sponsored agreement.
So what's the difference between In-Kind and a Cash Match?
In-kind contributions are those where no actual cash is being transacted. This could include donated volunteer time or the donation of non-university space as two examples. The value of the in-kind contribution should be readily determined, verified and justified. I.e. for calculating the volunteers' hourly rate, you should use a rate that would be reasonable based on the work to be performed. Cash contributions, on the other hand, would be an actual cash transaction. For example this would include an advisor's salary for his/her effort on the project or the purchase of equipment by the University or third party for the benefit of the project. In some funding opportunities the sponsor may identify a set percentage that has to be a cash match or in-kind.
What documentation do I need when preparing my proposal?
Cost share commitments must be documented with official correspondence from the organization providing the cost sharing (ANR or a Third Party).
How do I track cost share during the project?
At ANR, we use the effort and cost share reporting systems for tracking cost share. The PI is responsible for reviewing and certifying these cost share reports and that all cost sharing obligations are met. The PI would also have to track volunteer work hours outside of the effort reporting system. Third parties who committed cost share at the time of proposal would also have to provide certified reports confirming they met their obligations.
Couple Things to remember:
- Cost sharing is auditable and must be allowable under cost principles and verifiable by records.
- Cost sharing should only be from Non-Federal sources
- Costs must be necessary and reasonable for the performance of the project and incurred within the period of performance
For more information please visit the Cost Sharing page on OCG's website and on Extramural Accounting's website.
Thank you.
Kathleen Nolan, Director, ANR Office of Contracts & Grants (OCG)
Resources and Policies:
UC ANR Administrative Handbook Section 292 – ANR Cost Recovery Guidelines and Procedures
UCOP Contract and Grant Manual Chapter 5 – Cost Sharing