Cost Sharing Considerations

ASU’s objective is to maximize sponsor cost reimbursement to support continued growth of the research enterprise. By minimizing cost sharing when not required, ASU:
● Is able to make more money available to fund cost sharing where it is required to be a viable proposal;
● Reduces the time faculty and administrators must spend on tracking and documenting cost sharing;
● Lessens the university’s exposure to audit findings caused by insufficient or improperly documented cost sharing; and
● Curtails impacts on ASU’s facilities and administrative rates.

Cost Sharing versus Institutional Commitment
Institutional commitment refers to the resources or support an institution agrees to provide for a
project. However, this commitment crosses into cost sharing when it becomes quantifiable and trackable. For example, a statement like "We will provide graduate students to support this project" remains a general commitment until specific numbers or percentages are attached, such as "3 graduate students will dedicate 50% of their time." Once quantified, this commitment becomes cost sharing, which brings with it the obligation to track, document, and report these resources as part of the project’s financial responsibilities. Furthermore, this increases the administrative impact of the project, as administrators will need to support tracking efforts. When writing your proposal, keep the following in mind:
1. Avoid Quantifiable Language: Broad commitments like "providing staff support" are not cost sharing. But once you specify in a way that can be quantified, such as "assigning 20% of a staff member's time," “will be providing $3,500 in materials and supplies cost,” or “adding one full-time post doc,” it becomes cost sharing.
2. Implicate ‘Leverage’ Carefully: When you claim to leverage institutional resources in a proposal, ensure that you're not inadvertently committing to cost sharing. Clarify what resources will be leveraged and how, to avoid unintentional obligations.

Mandatory versus Voluntary Cost Sharing
● Mandatory cost sharing is required by the sponsor either as a stated proposal requirement or as a condition of obtaining an award.
● Voluntary cost sharing represents resources offered when there is no requirement in the sponsor’s funding announcement. ASU strongly discourages voluntary cost sharing. If it is unclear if cost sharing is mandatory, RA will contact the assigned Proposal GCO.
 

Considerations
Cost sharing adds complexity to a proposal, which can increase processing times in each stage of the sponsored project process. KE recommends that ADRs review potential funding sources for cost sharing to review department and investigator sources for cost sharing commitments. If interested in KE support, a request needs to be submitted 15 business days before the sponsor proposal deadline.

For additional information on cost sharing, visit this resource.