Accounting for in-kind contributions

The term “in-kind contributions” is used to refer to contributions to a literacy program other than cash. The amounts represented by these contributions should be shown in the budget as program expenses for which no funding is required.

Many donors like to see a complete specification of in-kind contributions to a program. This shows what groups and agencies are supporting the project and the level of their commitment.

In-kind contributions are hard to quantify in a way that satisfies everyone. The values assigned to in-kind contributions are often negotiated in the final program definition and costing.

• Make an estimate of the value of local in-kind contributions such as donated paper, donated building space, donated transport, or other donated equipment.
• Make an estimate of the number of person-months or person-years of time being donated to the program by personnel from national NGO s, government agencies, and other local organizations.

  Include the time committed by expatriate and other persons drawing a salary from any source other than the program.

  Local teachers who volunteer their time can be included if you can get a good estimate of the value of their time. Some donors will question this component if the person involved is otherwise unemployed and not fully qualified as a teacher.

  Base your calculations on a salary figure that a similar professional would be paid if hired to do the same work.

Here are some hints and suggestions for accounting for in-kind contributions:

• Consult with your branch or entity administration to assign a value to the time being donated by expatriate staff.
• In-kind contributions of materials and supplies should be costed at their current fair value, not the new retail value of the items in question.

• Funding a literacy program
• Preparing a budget for a literacy program
• Costing a literacy program

• Task module: Accounting for in-kind contributions
• In task module: Preparing a budget for a literacy program
• In task module: Funding a literacy program, by Stephen L. Walter and Trudy K. Stewart (general editor)
• In task module: Identifying resources needed for a literacy progra..., by Stephen L. Walter
• In task module: Planning a literacy program, by Stephen L. Walter
• In modular book: Plan a literacy program, by Stephen L. Walter, Barbara K. Trudell (contributor), and Trudy K. Stewart (general editor)
• In bookshelf: Literacy

This page is an extract from the LinguaLinks Library, Version 4.0, published on CD-ROM by SIL International, 1999. [Ordering information.]

Page content last modified: 18 May 1999

© 1999 SIL International