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Cost sharing is a way for organizations from businesses to universities to pool their resources to minimize expenses.

Mandatory(M)
Cost sharing that the sponsor (typically a federal sponsor) requires as a condition of the award.
 * For example, if the total cost of a project is $150,000, the sponsor might award $100,000 and require that the University provide (or find an outside source to provide) the additional $50,000 from non-federal funding sources.
 * The sponsor may require the University to provide either a fixed amount of money or a percentage of the project costs as cost sharing.
 * The sponsor and the University agree on the terms of the mandatory cost sharing during the initial negotiation of the grant or contract and the conditions are written into the award.

Committed(R)
Cost sharing that the PI promises in the project proposal budget or the budget justification that is not required by the sponsor.
 * The University discourages cost sharing commitments when not required by the sponsor.

Salary Cap(C)
Cost sharing required of faculty who exceed the salary cap. + National Institute of Health (NIH) + Substance Abuse and Mental Health Services Administration (SAMHSA) + Agency for Healthcare Research and Quality (AHRQ)
 * Salary Cap cost sharing is required by: