What does "cost sharing" involve in the context of grant management?

Cost sharing in grant management refers to the contributions made by the grant recipient to cover project costs that are not funded by the grant itself. This can include both cash contributions and in-kind contributions, which are resources or services provided that can be valued in monetary terms. By participating in cost sharing, grant recipients demonstrate their commitment to the project, enhance the funding proposal's credibility, and sometimes meet eligibility requirements set by the funding agency.

The concept is vital for fostering partnerships and leveraging additional resources for a project, which enables the organization to maximize the impact of the grant funds. Identifying and documenting these contributions are essential for accountability and compliance, allowing the funded project to achieve its goals while also showcasing the recipient's capacity to manage and utilize resources effectively.