Revenue Sources
Step 2 Clarify
Your Income Strategy | Step
4 Identify and Select an Appropriate Revenue Source
Step 3 Homework on Federal Cost Sharing Regulations
Page: 1 | 2Your cooperative agreement is governed by a few important rules for cost sharing. In fulfilling Federal guidelines, be sure you have met the requirements for what qualifies as a cash or in-kind contribution. Generally, contributions are acceptable provided they:
- can be verified with your organization’s records
- are not used on other Federally assisted projects
- are necessary and reasonable for accomplishing your project, salary or hourly rate
- are shown in your approved budget
- have been rightly valued depending upon the property
- were given with the purpose of meeting the match or cost share
- are not paid out of other Federal funds
You should know the documentation and substantiation requirements associated with establishing the value of your cost share. For cash provided by a third party as a match, a letter on organizational letterhead must be submitted verifying the commitment of financial resources, the amount and any restrictions on the expenditure of the matching funds. For third party in-kind contributions, letter documentation is required describing the form of the commitment made or resources given. When you use your own organization’s in-kind contributions, these must be documented by letter or memorandum, with supporting detail for and an explanation of any additional personnel time beyond the time committed as a cost share, any valuation where an individual’s efforts on the project add up to over 100% time and the total of salaries with fringe benefits and indirect costs. These must be documented by memorandum. A complete discussion of the requirements for cost sharing is presented in 45 CFR 74. For more information, see the Acquiring Public Grants guidebook, part of the National Resource Center’s Intermediary Development Series.
Page: 1 | 2
Step 2 Clarify
Your Income Strategy | Step
4 Identify and Select an Appropriate Revenue Source