Finding the right in-kind matches can make you feel like a rock star!
Many grant opportunities require applicants to “match” a requested amount by either a dollar for dollar match or some percentage of the request. While some funders require a cash match, many funders allow an organization to propose “in-kind” contributions to count as the match. Following are some keys points to consider on in-kind contributions.
Simply put, an “in-kind contribution” is a donation of goods and services that an organization would otherwise buy if they hadn’t been donated. A great example is the donation of staff time and materials a community partner provides to a program; A local drug/alcohol abuse prevention center provides a series of seminars to youth in an after-school program. The portion of time spent by the center’s staff and the cost of materials for these seminars can be considered an in-kind contribution as the after-school program would otherwise have to purchase these services.
Here are some keys for in-kind contributions:
– Personnel- If the applicant is counting on existing staff to provide services, the portion of the staff time in providing the services can be counted as an in-kind contribution.
– Benefits- The portion of benefits the applicant organization pays staff on the donated salaries from the above can be used as an in-kind contribution. For example, if Person A’s salary is $10,000, and Person A is contributing 10% of his/her time to the project (or $1,000), the benefit paid, on a prorated basis, can be included as an in-kind contribution. This can be calculated by: $1,000 salary contributed to service x 12% (percentage of fringe benefits)= $120 (the in-kind contribution).
– Materials/Supplies- The miscellaneous or program specific supplies and materials provided by the organization can be used as an in-kind contribution. Take a look at the organization budget for this category and if the program is going to draw supplies or other expenses this can be an in-kind contribution.
– Facility Operations- The cost of utilities (heating/air conditioning/electricity), janitorial, and rent can be an in-kind contributions. The prorated amount (the amount of time during the day/week the program is in operation versus the normal operations of the organization) can be used to determine the proration of the allocation of the in-kind contribution.
– Program Participants- For example, the time parents spend reading to their children who are participating in a literacy program is a form of an in-kind contribution by the parents. (Note: I’ve used a simple minimum wage calculation for the one or two hours spent by the parents in reading as an in-kind contribution by the parents for state and federal grants.)
When determining an in-kind contribution, use the smell test. If the contribution appears a bit outlandish or difficult to justify, take it out. Better to omit the odor now before it really stinks and eases the budget review process when a funder analyzes the budget.
What are some categories you look for when searching for in-kind contributions?
