Cost Share Determination Clause Samples
The Cost Share Determination clause defines how the costs of a project or agreement will be divided among the involved parties. Typically, it outlines the specific percentages or amounts each party is responsible for, and may detail which types of expenses are included or excluded from the cost-sharing arrangement. This clause ensures transparency and fairness in financial contributions, preventing disputes by clearly allocating financial responsibility.
Cost Share Determination. Effective Date: 10/30/2020 Although there is no general legislative requirement that recipients of grants or cooperative agreements must cost share, cost sharing is an important element of the USAID-recipient relationship. When used, its application should be flexible, case- specific, and used to support or contribute to the achievement of results. USAID should use cost sharing after considering whether it is appropriate for the recipient organization in the particular circumstances, in particular, the programmatic and technical context. There is no set formula for cost sharing. There is not a suggested numeric reference point. Cost sharing should be based on the needs or purpose of the activity. Examples of when cost sharing may be appropriate include: ● When there is a programmatic rationale for cost sharing, such as helping to ensure that the recipient will build its organizational capacity for mobilizing resources. For example, when building fundraising capability is an objective of an activity, it would be appropriate to require the recipient to meet specific private financing targets as a condition of USAID funding. ● When it is critical that the activity continues after USAID assistance ends, cost sharing requirements can ensure that the recipient establishes adequate alternate sources of funding. ● When an award supports an activity initiated by the recipient or an unsolicited application. Because most USAID funding is reserved for development priorities the Agency has already established, only limited funding may be available for even the best of other programs. USAID may only be able to partially fund these other activities. ● To otherwise give the recipient a financial stake in the success of a program. In all of these cases, the AO should discuss the amount and terms of cost sharing with potential recipients prior to award (see ADS 200saf, Guidance on Consultation and Avoidance of Unfair Competitive Advantage). The Activity Planner must determine the appropriate cost share for individual grants and cooperative agreements. The Planner must include this determination in the financial analysis of the program prior to issuance of a Notice of Funding Opportunity (NOFO), including an APS). In the case of awards solicited with unrestricted eligibility, the Planner and AO are encouraged to communicate with a broad range of potential applicants regarding appropriate cost sharing prior to issuance of the NOFO. Even after USAID issues a NOFO, it may be ap...