• Purpose
  • Definition and Criteria of Acceptability
  • Facilities and Administrative Costs (F&A) for Cost Sharing or Matching Purposes
  • Evaluating
  • ....University Services and Property
  • ....Volunteer Services
  • ....Third Party Employer Services
  • ....Services and Other Miscellaneous Contributions
  • ....Donated Equipment or Property
  • Cross References


    To define general Federal policies that govern:

    1. the acceptability of certain forms of contributions as meeting cost sharing and matching requirements, and
    2. the method to use in placing of value on contributions for Federally sponsored projects.

    Individual agencies may have guidelines that vary slightly from those identified herein, so one should verify an agency's specific requirements prior to taking any action.


    Cost sharing or matching means that portion of project or program costs not borne by the Federal Government [OMB Circular A-110 (A) (2) (i)].

    All contributions, including cash and third party in kind, shall be accepted as part of the University's cost sharing or matching when such contributions meet all of the following criteria:

    1. Are verifiable from the University's records,
    2. Are not included as contributions for any other federally assisted project or program,
    3. Are necessary and reasonable for proper and efficient accomplishment of project or program objectives,
    4. Are allowable under the applicable cost principles,
    5. Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching,
    6. Are provided for in the approved budget when required by the Federal awarding agency,
    7. Conform to other provisions of this Circular, as applicable.


    Unrecovered facilities and administrative costs may be included as part of cost sharing or matching only with the prior written approval of the Federal awarding agency.


    Values for University contributions of services and property shall be established in accordance with the applicable cost principles of OMB Circular A-21. If a Federal awarding agency authorized universities to donate buildings or land for construction/facilities acquisition projects or long term use, the value of the donated property for cost sharing or matching purposes shall be the lesser of (1) or (2):
    1. The certified value of the remaining life of the property recorded in the University's accounting records at the time of donation, or
    2. The current fair market value. However, when there is sufficient justification, the Federal awarding agency may approve the use of the current fair market value of the donated property, even if it exceeds the certified value at the time of donation to the project.
    Volunteer services furnished by professional and technical personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing or matching if the service is an integral and necessary part of an approved project or program. Rates for volunteer services shall be consistent with those paid for similar work in the University's organization. In those instances in which the required skills are not found in the University organization, rates shall be consistent with those paid for similar work in the labor market in which the University competes for the kind of services involved. In either case, paid fringe benefits that are reasonable, allowable, and allocable may be included in the valuation.
    When an employer other than the University furnishes the services of an employee, these services shall be valued at the employee's regular rate of pay (plus an amount of fringe benefits that are reasonable, allowable, and allocable, but exclusive of overhead costs), provided these services are in the same skill for which the employee is normally paid.
    Donated supplies may include such items as expendable equipment, office supplies, laboratory supplies or workshop and classroom supplies. Value assessed to donate supplies included in the cost sharing or matching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation.
    The method used for determining cost sharing or matching for donated equipment, buildings and land for which title passes to the University may differ according to the purpose of award, if (1) or (2) apply:
    1. If the purpose of the award is to assist the University in the acquisition of the equipment, buildings or land, the total value of the donated property may be claimed as cost sharing or matching, or
    2. If the purpose of the award is to support activities that require the use of equipment, buildings or land, normally only depreciate or use charges for equipment and buildings may be made. However, the full value of equipment or other capital assets and fair rental charges for land may be allowed, provided that the Federal awarding agency has approved the charges.

    The value of donated property shall be determined in accordance with the usual accounting policies of the University, with the following qualifications:

    1. The value of donated land and buildings shall not exceed its fair market value at the time of donation to the University as established by an independent appraiser (e.g., certified real property appraiser or General Services Administration representative) and certified by a responsible official of the University,
    2. The value of donated equipment shall not exceed the fair market value of equipment of the same age and condition at the time of donation,
    3. The value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately owned building in the same locality,
    4. The value of loaned equipment shall not exceed its fair rental value,
    5. The following requirements pertain to the University's supporting records for in kind contributions from third parties:


    Other Policies in this Manual may also apply, especially:

    AD44 - University Storage Space Management

    FN03 - Substantiation, Disclosure and Accountability for the Receipt of Contributions from Non-Governmental Sources

    BS15 - Disposal and Purchase of Obsolete, Surplus or Scrap University-Owned Equipment, Supplies and/or Materials

    BS17 - Use and Procurement of External Consultants

    RA01 - Determining the Allowability, Allocability, and Reasonableness of costs on Sponsored Projects

    RAG10 - Cost Sharing

    Effective Date: February 20, 1998
    Date Approved: February 10, 1997
    Date Published: March 02, 1998 (Editorial changes February 23, 2010)

    Most recent changes:

    Revision History (and effective dates):

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