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If a grantee or subgrantee donates real property for a construction or facilities acquisition project, the current market value of that property may be counted as cost sharing or matching. If any part of the donated property was acquired with Federal funds, only the non-Federal share of the property may be counted as cost sharing or matching.

May I use prison labor as in-kind match on my grant?

Prison labor from state and local correctional institutions is allowable in-kind match, as long as the costs meet the allowable cost criteria from the applicable cost principles.   Grantees may not use labor from Federal institutions, match must come from a non-federal source.  Whether the prisoners receive minimal compensation from the correctional institution for their services is immaterial for the purposes of determining allowable costs for third party in-kind in this situation. 

How would I value prison labor used as in-kind match?

Prison labor should be valued at the cost the grantee or subgrantee would have paid for the service.  Typically, prisoners perform manual labor services on grants.  In this case, the most appropriate rate would be the Federal minimum wage.  

Is the value of youth labor allowable as in-kind match on my grant? 

Yes, volunteer in-kind services provided by youth organizations or individuals are allowable, as long as the costs meet the allowable cost criteria from the applicable cost principles.

Is there a minimum age requirement necessary in order to document and use youth in-kind on my grant and comply with the Fair Labor Standard Act?

No. The Fair Labor Standards Act (FLSA) defines employment very broadly, i.e., "to suffer or permit to work." However, the Supreme Court has made it clear that the FLSA was not intended "to stamp all persons as employees who without any express or implied compensation agreement might work for their own advantage on the premises of another." In administering the FLSA, the Department of Labor follows this judicial guidance in the case of individuals serving as unpaid volunteers in various community services. Individuals who volunteer or donate their services, usually on a part-time basis, for public service, religious or humanitarian objectives, not as employees and without contemplation of pay, are not considered employees of the religious, charitable or similar non-profit organizations that receive their service.  This information was obtained from the U.S. Department of Labor website at the following address: http://www.dol.gov/elaws/esa/flsa/docs/volunteers.asp

How would I value in-kind labor donations from a youth? 

Youth labor should be valued at the cost the grantee or subgrantee would have paid for the service.  You should consider whether the work performed by the youth is equal to the work performed by a State employee and make valuation adjustments accordingly.

Can I use an in-kind donation from the National Guard?

Yes, the donation of personnel time is an allowable in-kind match, as long as the costs meet the allowable cost criteria from the applicable cost principles.  The donation of equipment time is not allowable, as the Federal government typically funds equipment for the National Guard.  

Can I use time contributed by AmeriCorps interns as in-kind match?

No,  Although these volunteers may work on federally-funded projects, their services may not be used by a grantee to fulfill the match requirement to federal grant program funds.  Americorps funding ultimately comes from the Federal Government, and therefore a federally funded volunteer organization such as Americorps, and any of their assets cannot be used to contribute to the matching requirement on a Federal grant.

The Assistant Inspector General for the Corporation for National and Community Service, their Director of Grants Management, as well as grants managers for other federally-funded volunteer organizations were consulted on this issue. 

What is a third party for the purposes of in-kind?

An entity that does not have a financial interest in the transaction.  If the entity is receiving funding from the financial assistance transaction either as a subrecipient or vendor/contractor, they are not considered a third party.  A common third party entity is a volunteer who works on a grant or cooperative agreement funded education program.  

A subrecipient is offering to discount part of the cost of the work they are contributing to a grant/cooperative agreement.  If they are not third party, is there a way I can count the value of the services as match?

Yes, these costs are called discounted services.  If the costs are eligible and allowable costs, they can be documented and claimed as match on the award.  Please note, that all non-cash transactions present a higher audit risk for the recipient.  The recipient should ensure that a proper value of the discount has been determined and documented in the recipient award file.  If you are unsure of how to value the contribution, please consult your FWS representative. 

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