How to Calculate In-Kind Contributions

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. See the Independent Sector website to calculate the value.
• 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.
• Labor donated for fundraising activities does not count towards in-kind.