How to Calculate In-Kind Contributions
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In-kind Definition: Services, material, equipment or labor committed or received at a conservative value that would otherwise be paid from the project budget. Both the donor and the service received should be identified.
In other words, in-kind contributions are goods (wholesale value) or services provided instead of cash for one of your project budget line-items. Both the revenue and the expense projections should reflect the in-kind contribution. Examples include:
- Professional services (legal, architectural, engineering, accounting, medical) at a customary hourly rate for your area.
- Other services (printing, site preparation, fabricating, sub-contractors, publicity) at customary rate for time and materials.
- Costs for use of machinery (heavy equipment) at customary hourly rate.
- Volunteer time actually involved in project implementation.
- Furnishings, food, landscape or construction materials (appliances, furniture, trees, plants, wood, plumbing, hardware etc.) donated by a business or an individual either directly or indirectly.
- Hours spent in the actual project (for instance, volunteers constructing a playground), does count as in-kind. Non-skilled volunteer labor such as this would be calculated at the Oregon/California minimum wage.
- Labor donated for fundraising activities does not count towards in-kind.