Cost-Sharing

Sponsored programs may require cost-sharing or matching by the University.  Cost-sharing is a financial commitment by the University toward the total cost of a project from a source other than the granting organization.

Definitions

Mandatory Cost-Sharing

Mandatory cost-sharing is funding that requires a university contribution toward the project as a condition of receiving the award.  Mandatory cost-sharing may be a specific dollar amount, cited as a percentage of the costs requested from the sponsor, or the amount may not be specified.

 

Voluntary Committed Cost-Sharing

Voluntary committed cost-sharing is a cost associated with a sponsored project and supported with university and/or other non-sponsored funds that were detailed in the proposal but were not required or funded by the sponsor.  Some common examples include the following:

  • A percentage of effort of faculty or senior researchers included in a proposal budget or stated in the text of the proposal for which no compensation or only partial compensation was requested.
  • The purchase of equipment for the project, identified in the proposal, for which no funds or only partial funds were requested.

 

Voluntary Uncommitted Cost-Sharing

Voluntary uncommitted cost-sharing is a cost associated with a sponsored project that was not committed in the proposal or in any other communication to the sponsor.  This includes effort of faculty or senior researchers that is over and above that which is committed and budgeted for in a sponsored agreement.  Some common examples include:

  • Donated faculty effort on a sponsored project over and above the effort identified in the proposal or award.
  • Academic year effort on a sponsored project for which only summer salary was proposed, if the effort was not listed either on the budget page or described in the body of the proposal.

Voluntary uncommitted cost-sharing should not be reported on time and effort sheets.

 

In-Kind/Matching

Some sponsors that award funds to a university insist that those funds be matched in some proportion with funds from another party, either from the university or another sponsor.  Matching may be in the form of actual cash expenditure of funds or may be an “in-kind” match, which is the value of non-cash contributions to the project.  In-kind or matching contributions made by a party other than PSU require documentation from that third party supporting the use of the funds as in-kind/matching and may require a certification of fair market value.  How third party matching may be valued as cost-sharing is described in OMB Uniform Guidance §200.306.