CLG 006 Certifying Officer Practice Exam

Contributions from non-federal sources are considered "cost share" because they represent a portion of the project funding that comes from outside the federal funding sources. Cost share is often required to demonstrate the commitment of the organization to the project and to leverage additional resources. Non-federal contributions can include funding from state or local governments, private donations, or income generated from project activities. This approach is crucial in grant and contract management, as it emphasizes a partnership approach to funding, where all stakeholders have a vested interest in the project's success.

Exclusive federal funds do not count towards cost share since they are part of the federal contribution and do not display the diversity of funding sources sought after in many financing situations. Personal loans from agency staff may pose conflicts of interest and therefore aren't typically recognized in this category. Bank loans can contribute toward project financing, but they are classified differently and usually do not meet the criteria for cost sharing, as they are expected to be paid back and not treated as contributions. Hence, only non-federal contributions affirmatively fulfill the criteria for cost sharing in most funding agreements.