Cost Sharing

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.

Types of Cost Sharing

  • Mandatory – The sponsor requires cost sharing as a condition of the award.
  • Voluntary – The sponsor does not require cost sharing as a condition of the award, but MIT offers cost sharing in the proposed budget to be more competitive.

In This Section:

  • As with costs directly charged to the sponsor, allowable cost sharing must be necessary and reasonable for the performance of the project objectives. As with direct charged expenses, cost shared expenses must be reasonable, allocable (i.e., directly benefit the specific project), and consistent with the terms of the award. Allowable cost sharing expenses must be expended (i.e., incurred) during the effective date of the award project. For details on eligibility criteria, see What Is Allowable/Eligible Cost Sharing. [webpage]

  • Yes, use:

    • Up to 66 percent of the MIT-provided tuition subsidy for Graduate Research Assistants
    • Equipment
    • Other expense categories
    • Faculty academic year (AY) effort greater than 10 percent, Employee Benefits, F&A
  • In general, values for contributions of services and property are established in accordance with either OMB Uniform Guidance or A-21 Cost Principles for allowability and the terms of the federal award. All documentation should include a brief statement describing the basis for determining the valuation of services, material, or equipment. 

    • Mandatory committed (required by the sponsor in the proposal solicitation or in the award negotiation):

      The DLCI pays direct costs; MIT pays F&A costs.

    • Voluntary committed (committed in the proposal but not required in the proposal solicitation):

      The DLC pays both direct and F&A costs.

  • Request that the subrecipient provide a budget that separately details, year by year, the proposed project; funds that are requested from the prime sponsor; and the direct and indirect costs that are offered as cost sharing by the subrecipient. The subrecipient’s budget should provide the same level of detail that the DLC provides for an MIT budget request. Please follow the instructions for entering cost sharing in the Kuali Coeus User Guide [webpage].

  • The data warehouse has a Brio Report [webpage] which will display all cost-sharing commitments in a DLCI.