Third-party funds (Drittmittel) are money that a university or research institution raises on top of its regular budget. If you do a doctorate or work in research, you will encounter the term constantly, for example in job advertisements, project descriptions and scholarship programmes. This guide explains what lies behind it and what consequences it can have for your doctorate.
Short answer: Third-party funds are additional money that universities raise from public or private funders for research, development, the support of early-career researchers and teaching. They come on top of the basic budget from the state budget. Typical funders are the German Research Foundation (Deutsche Forschungsgemeinschaft, DFG), federal ministries, the European Union, foundations and companies. For doctoral candidates, they often mean a fixed-term post.
The essentials at a glance
- Third-party funds come on top of the basic budget, that is, the regular state budget of the university.
- Funders can be public bodies, foundations or companies.
- The money usually flows into a specific project and is often time-limited.
- Third-party funds can go to the university, an institute or individual staff members.
- Your employment contract and the project term show whether your post is funded by third-party funds.
Where do third-party funds come from?
In its glossary (page dated 10 December 2021), the Federal Statistical Office (Statistisches Bundesamt) describes third-party funds as money that universities receive from public or private bodies in addition to their budget, to support research, development, early-career researchers and teaching. Funds from the state that maintains the university are expressly not included. This matters when you read financial figures about universities.
Typical funders are the German Research Foundation, federal ministries, the European Union, foundations and companies that commission research. The money is usually raised through applications, often together with individual professors.
What do third-party funds mean for doctoral candidates?
Many doctoral posts are financed through third-party funded projects. In that case you are employed as a research associate, and your salary depends on the term of the project. When the funding runs out, the post usually ends as well, unless it is extended. More on financing a doctorate can be found in PhD Funding: Position, Scholarship or Own Savings.
Scholarships work differently. They are usually paid directly to the person who receives them. Whether a specific grant is recorded as third-party funding in university statistics is decided by each university under its own rules. If in doubt, ask the doctoral office or the research administration. For health insurance during a doctoral post, see Health Insurance for PhD Students in Germany.
How do you recognise a post funded by third-party funds?
- Check the job advertisement. It often states that the post is financed from a specific project.
- Ask in the interview about the term of the funding and the options for an extension.
- Check the employment contract. It sets out the reason for the fixed term, the term itself and the pay grade.
- Clarify whether you work in a single project or in a larger joint project.
What is the difference from the basic budget?
The basic budget comes from the regular university budget and is plannable. Third-party funds are additional money for specific projects. They are therefore often time-limited, and a university cannot count on the same amount flowing in again. A post financed by third-party funds is therefore usually fixed-term.
Frequently asked questions
Are third-party funds the same as research funds?
Not quite. Research funds is the broader term. Third-party funds refers to money that comes to the university from outside. It also covers funds for teaching and the support of early-career researchers, not only research.
Are third-party funded posts secure?
They are tied to the term of the project. An extension is possible but never guaranteed. Plan your doctorate so that it remains feasible even if the post ends early, as far as your subject allows.
Can I raise third-party funds myself?
As a doctoral candidate you can apply for a scholarship, for example from a gifted-student support programme. Larger third-party funded projects are usually acquired by professors, though. If you are interested, speak to your supervisor.
Where can I find funders and open posts?
The research funding office of your university, the doctoral office and the job advertisement pages of the university are good starting points. The funders themselves publish their programmes on their websites.
Is a third-party funded post a permanent position?
Usually not. Third-party funded posts are fixed-term because they are tied to a project. If you want a long-term academic career, it is worth looking at the career planning offered by your faculty.
What to do now
- Check whether your post or project is funded by third-party funds, and note down the term.
- Read your employment contract carefully, especially the fixed term, the pay and the extension rules.
- Clarify with your supervisor what happens when the project ends.
- Compare the funding routes for your doctorate: post, scholarship or own savings.
Related reading
- PhD Funding: Position, Scholarship or Own Savings
- PhD in Germany: routes, titles and requirements
- Health Insurance for PhD Students in Germany
- Health Insurance During a PhD in Germany
Sources: Federal Statistical Office, Glossary: Drittmittel (in German) (last update of the page 10 December 2021), Explanations on university finance statistics (in German) (accessed October 2026).
Stand: October 2026. This guide is general information, not individual advice.
