Grants and Research Office
Matching Funds
When Do I Need Matching Funds?
In most cases, it is not necesary (or advisable) to commit matching cash funds to a sponsored project. Doing so draws on limited University resources, commits you to actually expending and accounting for these funds, and directly depresses the amount of money the University will get from the federal government in the form of indirect costs for years to come. Contrary to popular myth, the pledging matching cash to a proposed project does not usually enhance the competitiveness of a proposal; in fact, some agencies (notably NSF) are trying hard to eliminate matching funds from their evaluation process in favor of funding projects that promise the best science and are more likely to have an impact on broader scholarship.
That said, there are times when it is absolutely necessary to commit matching funds to a sponsored project. In some cases, the funding agency mandates that an institution receiving a grant directly share the costs of carrying out the project. In other cases, a cap on the award from the agency makes it necessary to "top off" an external award with additional funds in order to be in a position to pursue the project in an effective way. In rare cases, the agency will announce that higher levels of cost-share will, indeed, affect the competitiveness of proposals that it receives. In all cases, though, you are obligated to keep the commitment of cost share to an absolute minimum, and the Grants and Research Office monitors this area of the budget especially closely.
What Should I Do If I Think I Need Matching Funds?
Contact the Grants and Research Office as early in the proposal development process as possible.
The GRO has a fund to cover the commitment of institutional cash to sponsored projects. If needed, the GRO will assign funds to meet your needs in this area. If other departments within the University plan to pledge matching funds, the budget person responsible for the account from which the funds will be drawn must sign off on the commitment using Form PRF-A, and this form becomes part of the internal review process. When committing external in-kind match (non-cash contributions from outside UST), you should use Form PRF-B.
