What are "in-kind contributions" in the context of federally funded projects?

In the context of federally funded projects, "in-kind contributions" refer specifically to non-cash donations of goods and services that support the objectives of the project. These contributions can include a variety of resources, such as donated materials, equipment, or professional services, which have value but do not involve a direct cash exchange.

Recognizing in-kind contributions is important as they can significantly enhance a project's capabilities without requiring additional funds. For example, if a community organization donates supplies for a public health initiative or a local business provides technical assistance at no charge, these would both qualify as in-kind contributions. Calculating the value of these contributions accurately is essential for reporting and compliance with federal funding regulations.

The other choices do not align with the definition of in-kind contributions. Cash donations are monetary gifts, unreported funding does not represent legitimate or accounted support, and while volunteer hours can be valuable, they typically must be documented separately and are not classified as in-kind contributions unless they represent a form of service provision or professional expertise.