Cost Share Terms

Cost Share is a commitment made by the institution to fund a portion of the total cost of a sponsored agreement. This commitment may be for direct and/or indirect costs, and may consist of institutional funds or funds from other outside sources. Cost Sharing can be classified as either mandatory or voluntary. Cost Sharing is also referred to as “Cost Matching.”

Mandatory Committed Cost Share is a contribution to a sponsored project or program required by the sponsor as a condition of the award. Such contributions are binding commitments and must be accounted for in accordance with this policy. This type of Cost Sharing must be included in the proposal budget.

Voluntary Committed Cost Share is not required for funding consideration but quantified contributions reflected in the proposal narrative, budget, and/or budget justification. These are binding commitments and must be accounted for, in any resulting award, in accordance with this policy. The federal government has stated that cost share is not considered for proposal competitiveness unless specifically referenced in the solicitation. Therefore, Voluntary Committed Cost Share should be avoided.

In-kind contributions represent the value of non-cash contributions provided by the University or non-Federal third parties. When such contributions benefit a sponsored project, they generally may be counted as Cost Sharing. In-kind contributions may be services provided by volunteers or use of equipment (not contributed equipment). All In-Kind commitments must be pre-approved by OSP.

Institutional Base Salary (IBS) is the total guaranteed annual compensation an individual receives from a UT Institution, whether the individual’s time is spent on research, teaching, patient care or other activities. The IBS shall be used to compute salaries charged to sponsored programs unless sponsored policies further limit salary charges. IBS includes compensation for instruction, public service, research, and/or other activities. IBS excludes: fringe benefit payments; reimbursed expenses; temporary, supplemental compensation for incidental work; income earned outside of duties to the institution; and any portion of compensation deemed to be at-risk.

Matching is synonymous with Cost Share; see prior definition of Cost Share.

Third-party Cost Share is that which is provided from entities outside the University.