Cost sharing is the portion of a project or program cost that is not reimbursed by the sponsor. In a proposal or an award, cost sharing represents a commitment by the Institute. It should be kept to a reasonable level because of the burden placed on Institute or departmental resources.
Mandatory and Voluntary Cost Sharing
Limit cost sharing to mandatory cost sharing – situations where it is mandated by a sponsor.
If cost sharing is not mandated by the sponsor (voluntary cost sharing), the PI or DLCI will be responsible for funding both the direct and the F&A costs associated with such a commitment. It is not possible to cost share direct costs without also cost sharing associated F&A costs.
Uniform Guidance specifies that voluntary cost sharing is not expected in federal research proposals and cannot be used as a factor during merit review.
Fulfilling Cost Sharing Commitments
The DLCI submitting the proposal and administering the award is ultimately responsible for fulfilling the full dollar amount of the cost sharing commitment, including:
- Ensuring that any other participant in the proposed project meets its cost sharing commitment.
- Identifying alternate forms of cost sharing, if proposed forms of cost sharing do not materialize or other circumstances change over time (including tuition subsidy and PI salary)
Sources of Cost Sharing
MIT’s preferred sources of cost sharing are:
- Up to 66 percent of the MIT-provided tuition subsidy for graduate research assistants
- Faculty academic year committed effort of 10 percent or more, employee benefits, F&A.
Before proposing any other sources of cost sharing, check whether it is allowable and discuss with your RAS CA.
Cost Sharing at Proposal
Ensure that cost sharing is allowable and approved by your DLCI (and any other funding sources) before submitting a proposal with cost sharing.
Cost Sharing Post-Award
At post-award, monitor, track, and document cost sharing to ensure that all cost sharing commitments (mandatory and voluntary) made as a condition of the award are met, properly recorded and documented. Complete the Cost Sharing Template [XLSX] throughout the award to ensure accurate accounting (view instructions).
Updated December 18, 2025