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What is Cost Sharing?

Cost sharing or matching means that portion of project or program costs not borne by the funding agency. It includes all contributions, including cash and in-kind, that a recipient makes to an award. If the award is federal, only acceptable non-federal costs qualify as cost sharing and must conform to other necessary and reasonable provisions to accomplish the program objectives. Cost sharing effort is included in the calculation of total committed effort. Effort is defined as the portion of time spent on a particular activity expressed as a percentage of the individual's total activity for the institution.

Cost sharing is auditable and must be allowable under cost principles and verifiable to records.

An example of cost sharing is any personnel listed on the project budget (showing % effort) for whom no salary is requested in the budget, or if salary is requested, it is less than what is needed to pay for the entire % effort. In this instance, the individual's portion of salary equivalent to that % effort not in the budget, in addition to the fringe benefits and indirect costs associated with those costs, would be considered cost sharing.



Mandatory Versus Voluntary Committed Cost Sharing
There are two types of cost sharing that must be documented and tracked:

Requirements for Cost Sharing Allowability
Cost sharing is allowable under the following circumstances: Sources of Cost Sharing

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