Definition: A third party (not MIT) contributes or donates cash or services (i.e., material/personnel/equipment) or other allowable items to the project.
Important! Because this is not an expenditure made by MIT, the DLC should provide documentation from the third party—including the value of the donated materials and supplies—to the OSP to substantiate that the commitment has been fulfilled.
In general, values for the contribution of services and property are established in accordance with the OMB Uniform Guidance or A-21 Cost Principles for allowability and the terms of the federal award.
- All documentation should include a brief statement describing the basis for determining the valuation of services, material, or equipment.
- Detailed Valuation and Documentation Guidelines are described in the reference document – Cost Sharing Primer for DLC Administrators, pages 10-13.
- Third-party cost sharing on federal awards and grants must meet the Uniform Guidance or A-110 criteria that define allowable cost sharing expenditures.
Third-party cost sharing offered voluntarily in a proposal—as with all MIT-offered voluntary cost sharing—becomes a commitment under the terms of the award, and represents a binding obligation of the Institute.
Action Items for DLCs:
- Annually provide copies of documentation of non-MIT-funded cost sharing to OSP and Sponsored Accounting
- Maintain copies of non-MIT-funded cost sharing – in the event of an audit or questioned costs