Black Emergency Managers
Association International
Standard In-Kind Rate for volunteer services: $150.00/hr, or as designated by private
sector member wage\salary rate.
What are In-Kind Contributions?
The Hazard Mitigation
Grant Program (HMGP) requires all grantees
to meet a 25 percent cost share for a
single project. Fortunately, the
cost does not have to be just cash for the projects expenses. These non-cash contributions are often referred to as “In-kind
contributions”.
They may consist of grantee/sub-grantee contributions such as
property or, third party contributions including services, equipment, or
property. The value of the donation
goes toward the 25 percent the grantee/sub-grantee has to contribute. Cash
contributions by a third party are not considered in-kind contributions but
can make up part or all of the 25 percent the grantee/sub-grantee
contributes. The following information
is for reference use only.
Please locate full
regulations in Title 44, Part 13, Section 13.24 of the Code of Federal
Regulations.
To qualify as in-kind
the following conditions apply:
1.
Must be necessary and
reasonable to accomplish the projects objectives.
2.
Cannot be from a
Federal source.
3.
Cannot be program
income
(Any unspent funds from
an approved Mitigation project may not be used)
4.
Cannot be used to
match another Federal grant.
5.
Must apply to the cost
sharing requirement of the grant.
In kind contributions must be documented and verifiable in the
grantee’s records. Records must be
maintained to support how the value of the in-kind contribution was
determined.
Note: Good Question to ask
“Would it be necessary to buy the service or property in order
to accomplish the projects objectives, and is the cost (value) reasonable for
this purpose”?
Determining the value of the In-Kind Contributions
Donated Services:
* Volunteers- Unpaid
services provided to a grantee/sub-grantee by an individual are valued at the
pay for similar work in the grantee’s organization. If the job is foreign to your agency, it’s
suggested to use minimum wage or seek private market value of the work to be
performed. i.e. A local attorney affected by the flood
donates her time to review the real property acquisition contract documents
and conduct the settlements for the grantee/sub-grantee.
The normal cost of the attorney’s professional time donated to
the project (based on her normal per hour or per settlement rate) is
allowable as local in-kind cost-share.
* Employees of other
organizations – When another organization provides, free of charge, the
service of an employee in that employee’s line of work, the services are
valued at the employee’s regular rate of pay.
This does not include the employee’s fringe benefits and overhead
costs. If the services are in another line of work, then the value is
calculated in the same manner as that for volunteers. i.e. Local contractors donate their
services to complete seismic retrofit work to residents’ homes.
The normal cost of their time is allowable as a third party
in-kind contribution. It should be noted that Federal employee’s time on duty
cannot be used as in-kind.
Donated Use of
Equipment or Space: (Title is retained by
the donor)
* Equipment or Space – the contribution will be valued at the
fair rental rate.
Donated Supplies, Equipment, Buildings and Land (Title passes to
the grantee or subgrantee)
* Supplies – Supplies are valued at the market value at the time
of donation i.e. The local hardware store donates construction materials for
a hurricane shuttering project. The retail value of those materials is
an allowable third party in-kind contribution.
* Equipment, buildings, and land – The purpose of the grant will
determine how the donated property will be administered.
Grant Acquisition of
property – the market value of the property at the
time of donation may be counted as cost sharing or matching.
i.e. A homeowner accepts 75 percent of the value of his home in
cash and donates the rest of the appraised value to the project. The 25
percent he donated is allowable as a third party in-kind contribution.
All Other Grants – the market value at the time of donation of the donated
equipment or building and fair rental rate of the donated land may be
counted. Approval may be given only if
the equipment or rental of the land purchased is approved as an allowable
direct cost. If any part of the
donated property was acquired with Federal funds, only the non-federal share
of the property may be counted.
* Grantee or
Subgrantee donated real property – the estimated value of
grantee-owned real property is determined by the current market value
(assuming that these items were not purchased with Federal funds).
Note:
In some cases it might be required to use an independent
appraiser to determine fair market value of land or buildings, or the fair
rental rate of land or of space in a building.
This requirement will be set by the grantee or sub-grantee.
|
