Cost Sharing Definition:
Cost sharing is the support of a project through either cash or in-kind contributions, either required by some sponsors or volunteered by the institution. Cost sharing requirements vary, but they generally represent a percentage of the total cost. Cash contributions represent any cash expenditures by the institution and in-kind contributions are those provided by an outside entity.
Cost sharing should be limited only to those situations where it is mandated by a sponsor or where a Principal Investigator has determined that such a contribution is necessary to ensure the success of a competitive award or proposal.
When cost sharing or matching is required by the sponsoring agency or volunteered by the university, it becomes a commitment of the university. A budget of how the cost sharing is to be met should be included in the proposal package. The department will be required to document the source of the cost sharing in the proposal.
If specific effort or other commitments are specified anywhere in the proposal (including the narrative or current and pending support statement) and no associated cost is detailed in the budget, it becomes a cost sharing commitment and will need to be shown as cost sharing on the proposal transmittal form. The corresponding fringe benefits and indirect costs on cost-shared salary will also need to be shown. In those cases where cost sharing is not required as a condition of the award or mandated by the university, and less than 5 percent of an individual's total effort is expected to be contributed to the project, the following statement should be inserted somewhere in the text of the proposal or on the budget justification:
"Oregon State University assures that the faculty member will make a contribution to this project but that the expected level of effort is not a significant portion of the individual's overall effort."