What does 'cost sharing' refer to in grant proposals?

Cost sharing refers to the portion of project costs that is covered by the institution rather than the grant or funding agency. This practice is important in grant proposals as it demonstrates the institution's commitment to the project and shows that they are willing to invest their own resources in addition to the funds provided by external sources. Cost sharing can include cash contributions, in-kind contributions (such as donated time or resources), or even facilities and administrative costs that the institution agrees to bear. By showing cost sharing in a proposal, institutions may enhance the competitiveness of their applications, highlighting their investment and support for the research endeavor.