Grant funded projects often use a mix of cash and in-kind contributions to achieve the project goals. These contributions could be goods and services such as labor, equipment, needed supplies, or the use of facilities such as a laboratory for research.
Depending on the grantor’s rules, in-kind contributions can count as part of matching funds. Startups often find it difficult to find cash for matching funds, which is why in-kind contributions can be so important.
Different grants have different rules for how these can be counted. For example:
- what is the proportion of in-kind contributions that can be counted as equal to cash?
- what precisely are the allowed types of contributions?
- What is the method for valuing contributions such as the hourly rates attributed to volunteers, used equipment, or a contributing organization’s overhead?