Cost Sharing

Cost sharing is defined as the portion of total costs of a sponsored project paid for by Stanford, rather than the sponsor. Only include cost sharing in a proposal when specifically required under the terms of the particular grant. There are three important terms associated with cost sharing.

1. “Mandatory Cost Sharing” is defined as cost sharing that is required by the sponsor as a condition to obtaining the award.
   
2. “Voluntary Cost Sharing” is defined as the cost that Stanford offers to pay for in order to become more competitive with peer institutions and peer PIs who are applying for awards for similar types of projects.
   
3. “Committed Cost Sharing” is defined as cost sharing —either voluntary or mandatory - once cost sharing is proposed and accepted in an award.

If cost sharing is COMMITTED, that is, proposed by Stanford and accepted by the sponsor, it must be ACCOUNTED FOR as cost sharing. This allows costs to be sorted and categorized for the indirect cost calculation. It also verifies cost sharing to our sponsors.

At the time of award, The Office of Sponsored Research will open a PTA , and a cost sharing task and award associated with the project .  Research Administrators should make sure cost sharing expenses are charged to the cost sharing TASK. Uncommitted cost sharing does NOT need to be tracked in a cost sharing task.

Links for tools related to this topic are provided below:

• Cost Sharing: Stanford University Policy and Procedure, RPH 3.5 - This page includes Stanford policy, definitions, links to the implementation guidelines, the Cost Sharing Authorization form and the Federal Requirements for Cost Sharing
• Cost Sharing Authorization Form (OSR Form 37)
• "Budgeting Cost Sharing Commitments" memo from the OSR Sr. Director, December 13, 2005
• OMB Circular A-110
• Training - Cardinal Curriculum "Regulatory Environment: Cost Sharing"