Cost sharing should be proposed only when required by the sponsor or strongly encouraged and should not exceed the levels required by the sponsor. Voluntary cost sharing should be avoided. Cost sharing consumes scarce resources and also places a heavy administrative burden on the University since it must be extensively documented. Cost sharing by the University must be identified as either "In-kind" or "Cash Match."
The Division of Research form titled "University Cost Sharing" must be filled out and signed by the appropriate individuals to document approval for in-kind cost sharing and cash matching. Proposals that require cost sharing will not be submitted to the sponsor until the Division of Research receives a written commitment from the appropriate Dean and/or Vice Chancellor.
Whenever possible, cost sharing should be limited to salaries and wages and the fringe benefits and facilities and administrative costs (indirect costs) attributable to those salaries and wages.
These costs are considered “in-kind” because the University provides the services of faculty and does not receive compensation.
Sponsors sometimes request that the University contribute or "match" a portion of the funds requested. When required by a sponsor, matching funds become a condition of any award, which is made based upon the proposal. Items of equipment, which are purchased for and used exclusively during the life of the project, may be used as cost sharing with appropriate supporting documentation. The equipment must be listed in the proposal and identified as a cost sharing contribution by the University. Supplies and other costs may be used as well, but only if the charges can be monitored.
Third-party cost sharing
Though not encouraged, organizations other than the University may cost share in a project. The Division of Research must receive written commitment from the person authorized to financially commit the organization before the proposal is submitted.