Cost share is a portion of project or program costs that is not borne by the sponsoring agency.
Cost share should be included in proposal submissions only when it is required by agency policy or guidelines. Any cost share included in a proposal must be approved by appropriate university offices (departments, responsibility centers, and/or campuses) and must meet the regulatory requirements, as appropriate, of the funding agency, the university, and Uniform Guidance.Read IU's policy on cost sharing on sponsored programs
Cost share expenses must be separately budgeted and recorded in cost share subaccounts associated with the main grant account(s). Your department is required to maintain documentation of cost share allocations.
To be recorded as cost share, an expense must be allowable under the terms and conditions of the award. Cost share cannot be funded from another grant or contract without both agencies' approval.
Cost share commitments can be funded either through university funding or through an external entity. There are three types of cost share:
Mandatory cost share:
- Required by the sponsor
- Must be documented
- Identified in the funding announcement, award terms and conditions, or within the policies or guidelines
Voluntary committed cost share (not recommended):
- Not required by sponsor but included by the university in the proposal submitted to the agency.
- If the proposal submission results in an award, the cost share included in the proposal becomes a part of the award and is therefore committed by the university.
Voluntary uncommitted cost share:
- Costs provided during the life of the project by university.
- It wasn't committed in the proposal.
- It wasn't required by the awarding agency.
- Voluntary cost share will not be budgeted nor expenses recorded in cost share subaccounts within the Kuali Financial System.