Answer to Question 1
Cost sharing, which is also called matching or cost matching, occurs when the grant-seeking organization agrees to pay certain costs (by contributing cash or in-kind goods or services) of the project. For instance, an organization may agree to contribute the cost of office space, incentives, photocopying, a percentage of a worker's time, and/or indirect costs. Grant seekers should check the grant guidelines or call the sponsor to determine whether cost sharing is required and, if so, how much of the grant costs must be matched. If cost sharing is required, the grant-seeking organization usually is required to contribute (or match) a percentage of the funds requested. For example, some grant sponsors require that the grant seeker contribute one dollar for every dollar they award (a 100 percent match). Others may require the grant seeker to contribute more or less than a dollar for every dollar they award.
Answer to Question 2
Direct costs are concrete project expenditures that are directly listed line by line in the budget and usually include personnel, equipment, supplies, and travel. Indirect costsalso called overhead, administrative costs, or administrative and facilities costsusually are not specifically listed on budgets because they tend to be difficult to price individually. Examples include costs of administering the grant, facility and equipment usage, and utilities. Indirect costs typically are calculated as a percentage of the direct costs.
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