Cost sharing is defined as the portion of project costs not reimbursed by the sponsor. In most cases, the cost sharing source will be university funding, but other sources are also used to meet the university’s cost share obligation.
Cost Sharing is only required when clearly defined in the funding opportunity notice.
Cash Contribution: An actual cash transaction occurs and can be documented in the accounting system. This includes allocation of compensated faculty and staff time to projects. Other examples of cash contribution include the purchasing of equipment by the institution or other eligible sponsor for the benefit of the project requiring cost sharing.
In-Kind Contribution: In-kind contributions are those wherein a value of the contribution can be readily determined, verified and justified but where no actual cash is transacted in securing the good or service comprising the contribution. Two examples of in-kind contributions are: (1) The donation of volunteer time valued at a rate that would be reasonable for the time devoted had the volunteer been compensated for the time. (2) The donation of non-institution space where such space would normally carry a fee for purposes other than supporting this particular project.
Third party/other cost share must be secured on company/institution letterhead signed by a company executive. Proof of received third party cost share must be confirmed by the PI and be accompanied by documentation from the provider.