Defining Cost Sharing
The terms “cost sharing”, “matching”, and “in-kind” generally refer to the portion of the total project cost not borne by the sponsor. Although these terms are often used interchangeably, administrators and prospective applicants must pay special attention to the sponsor’s particular definitions of these terms. Typically cost sharing is categorized as either mandatory or voluntary. Mandatory and voluntary committed cost sharing must conform to Carthage and Federal policies regarding allowability, allocability, and reasonableness. The same is true for cost sharing involving gifts, donated services, or volunteer services.
Cost sharing, sometimes called “matching”, refer generally to the salary or cash portion of the total project cost not paid by the sponsor. The College is making a cost sharing promise to a sponsor when the proposal or budget includes a statement that leads a reader to believe that non-sponsor funds will be available or devoted to a project. In the case of cost shared effort, cost sharing is promised or committed when the proposal or budget includes a statement that quantifies the amount of time to be devoted to the work.
“In-kind” contributions generally refer to non-cash contributions to a project (e.g., goods, commodities, or services provided by a third party). These third party contributions must be integral to and necessary for the project or program, and their value must be reasonably determined.