Leveraging In-Kind Contributions in Grant Applications
Including in-kind contributions in grant applications can be a bit of a puzzle, in understanding what they are, their value, and why they are important to a project. In fact, the value of in-kind contributions often gets overlooked in project budgets, which unfortunately means a lost opportunity to demonstrate the project's full value in grant applications.
In-kind contributions include non-monetary resources such as goods, services, or expertise, provided to projects or organizations by individuals, other organizations, or businesses. These contributions play an important role in strengthening grant proposals by demonstrating community commitment, reinforcing the case for support to funders, and showing strategy and resourcefulness—which is particularly valuable for smaller projects or organizations with limited finances.
Consider this scenario. An organization is applying for a grant to start a community garden. The local nursery is providing discounted plants, the university's horticulture program is contributing used gardening tools and hosting a workshop, and 10 volunteers are generously offering their time. These in-kind contributions are critical to the project's success and future sustainability, represent cost savings, and demonstrate value by highlighting community support and commitment.
When integrating in-kind contributions into grant proposals, it's important to:
Clearly specify and describe the expected in-kind contributions, which may range from equipment and supplies to volunteer hours or free or discounted services (the discounted portion is “in-kind”).
Use a reasonable method to assign a monetary value to each contribution (e.g., actual prices or service quotes). Volunteer time can be estimated at the value of the job they are doing (what it would cost if you had to pay for that job to be done).
Align the in-kind contributions closely with the project's objectives and activities, highlighting their significance in achieving outcomes and where applicable, their importance to sustainability (e.g., attributing the garden's sustainability to continuing volunteer efforts).
Include letters of support to confirm the commitment and value of the contribution.
Include in-kind contributions in the project's budget as you would any essential project expense while offsetting corresponding revenues as "in-kind" to balance the budget. This will show the project's true cost and demonstrate how in-kind contributions lower costs.
As always, review the grant guidelines thoroughly for any information regarding in-kind contributions and look for how funders would like it accounted for if they provide a budget template.