Cost sharing

Cost sharing is the portion of financial support for an award that is provided by a source other than the sponsor. Cost sharing may take the form of cash or in-kind contributions.

Most important: MIT strongly encourages you to limit cost sharing to that which is mandated by the sponsor. Your proposal should avoid the mention or implication of cost sharing unless the sponsor mandates that you do so.

Essential guidelines

  • Whether mandatory or voluntary, cost sharing offered before the award is a binding commitment once an award is made.
  • Failure to fulfill the cost-sharing obligation at the level proposed results in a reduction of the amount of the sponsor’s award.
  • As the principal investigator (PI), you are responsible for identifying and providing the resources for cost sharing of direct costs.
  • If the PI volunteers cost sharing, the PI or his/her department, lab, or center (DLC) is responsible for funding the F&A cost (facilities and administration or indirect costs) associated with the cost-sharing commitment. Learn more about funding F&A costs as cost sharing.

Helpful links to general information about cost sharing

Helpful links for compliance in the proposal phase

Helpful links for compliance after the award

Visit the OSP website to review best practices.