Cost Sharing is the term for when a sponsor requests that the organization contribute financial support to a project.
What is Cost Sharing?
Cost sharing or matching, as used in accounting, refers to the portion of a project or program's expenditures that are not covered by the funding source. It covers all contributions that a recipient contributes to an award, including monetary and non-monetary ones. Only eligible non-federal expenditures qualify for cost sharing if the award is federal, and they must adhere to other necessary and reasonable requirements to achieve the program's goals.
The total committed effort is calculated to incorporate cost sharing effort. The amount of time spent on a specific activity stated as a percentage of the person's overall activity for the institution is known as their effort. Cost sharing must be acceptable under cost principles and traceable by records in order to be subject to audit.
The benefits of cost sharing:
They give marketers the tools they need to deal with the increasing costs of direct marketing necessities like postage and paper, which are posing competitive problems. Because the expenditures are shared, they assist marketers in lowering direct mail expenses. The growth of technological technologies and alternate media outlets has increased their efficacy.
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