Cost sharing
Cost sharing is the financial and non-financial support contributed by the University or a third-party to sponsored projects in order to complete the project’s statement of work. It is University policy to commit cost-share only when required by the sponsor and only to the extent necessary to meet the sponsor’s specific requirements.
All cost sharing requires prior approval from the University before the application is submitted to the sponsor.
- For detailed information about cost sharing, access GAP 200.140, Cost Sharing on Sponsored Projects
- See also Section 8.2.1 of the Research Policy Manual: Financial Management and Costing - Cost Sharing
Only cost sharing that is necessary and reasonable for accomplishment of project or program objectives and is required by the sponsor as a condition of the award, should be included in applications for external funding.
It may be tempting to think that your proposal will be more competitive if you show institutional financial support, however it is important to avoid using terms anywhere in your proposal (including in letters of support) that imply cost sharing unless required by the funder.
It can sometimes be difficult to know if cost sharing is required by the funder because of “gray area” descriptions in the solicitation – for example:
- Cost share not required but “highly encouraged”
- Cost share included in merit review criteria
- Merit review (or summary statement) comments reflect low score for institutional commitment
In these cases, cost sharing is not considered to be mandatory, though each case will be evaluated to determine if an exception can be made.
Types of cost sharing
| Mandatory Cost Sharing |
|
|---|---|
| Voluntary Committed Cost Sharing (VCCS) |
|
| Voluntary Uncommitted Cost Sharing (VUCS) |
|
Access GAP 200.140 for further details
Describing cost sharing in grant applications and letters of support
Terms to Avoid
The following are “red flag” terms that suggest cost sharing. Avoid using these terms unless cost sharing is required by the sponsor:
- Cost sharing
- Sharing
- Matching
- In-kind
- Donate
- Commit % or $
- Allocate % or $
- Exclusive use
- Volunteer
- Support at no cost
- Contribute
- Example rates or per item charges (for example $100/hr or $45 per review)
| When cost share IS required by the sponsor (mandatory) | When cost share IS NOT required by the sponsor (voluntary) |
|---|---|
| Duke University is highly supportive of this project and agrees to cover the costs of the salary/effort of the PI for the duration of the project | Duke University demonstrates support of this project though the availability of expert advice and consultation of the PI, as needed |
| The PI requests 40% salary for this project, and will devote an additional 10% effort that the University will support | The PI requests 10% salary support for this project (direct charged in the budget) and will provide additional support to the project, as needed |
| The department will purchase [equipment] (cost $XX,XXX) for use in support of the PI’s work on this project | The PI has access to [space], [resources], [equipment] that is beneficial to this research |
| The PI will provide intellectual direction to the project and co-author publications. Her salary (5% effort) will be supported by the University | No salary support is being requested for the PI, however she will provide oversight and intellectual direction for the project and be directly and significantly involved throughout the project |
Required documents for pre-award cost sharing commitments
| Commitment type | Documentation required | Form required? |
|---|---|---|
| Faculty effort | None | yes |
| Other Duke resources (including staff salaries, equipment, copying, etc.) | Letter of commitment | yes |
| Waiver of F&A | Policy statement from sponsor | no |
| 3rd Party commitment | Letter of commitment | yes |
NOTE: The University requires that F&A costs be calculated on faculty effort and other contributed resources, and included in the cost-sharing totals unless this is unallowable by the sponsor. The rationale is as follows: If instead of contributing these resources, Duke had asked the sponsor to provide them, Duke would also have asked the sponsor to pay the associated F&A costs. The F&A costs which the University will not collect are considered part of the cost to Duke of supporting the project.
- MNMC affiliates: Select "SOM Cost Share Request" from the SUBMIT A REQUEST menu at top right of myRESEARCHhome
Cost sharing FAQs
What are the roles and responsibilities associated with administering cost sharing?
Access "Roles and Responsibilities" within GAP 200.140 for details.
For assistance during proposal stage:
- Provost Area/Campus Schools: Contact ORS
- School of Medicine/School of Nursing: Contact ORA
For assistance post-award:
- PIs should work with GM, departments and management centers to ensure all cost sharing is approved, recorded and documented.
What criteria must contributions meet to be considered a part of the University's cost sharing commitment?
Contributions must be:
- Verifiable from Duke's, as the grant-recipients, records
- Not included as contributions for any other external award
- Necessary and reasonable for accomplishment of project or program objectives
- Allowable, per sponsor terms and conditions
Is cost sharing the same as an unallowable expense?
No.
Cost sharing is not the same as an unallowable expense. An unallowable expense is one for which the sponsor will not reimburse the institution, either because:
- The amount the sponsor will reimburse is limited (for example, salary over the DHHS cap) or;
- There is a policy or regulation that prohibits the expense to be direct charged to the project.
What expenses are not eligible for cost sharing?
The following are not eligible for cost sharing:
- Unallowable costs
- The use, and any related expenses of using, University facilities, such as laboratory space.
- Depreciation on equipment.
- PI compensation over the sponsors mandatory salary cap (e.g. the Department of Health and Human Services (HHS) salary cap).