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In-Kind Contributions Explained

In-kind contributions are defined as eligible non-monetary resources that external eligible partners provide to eligible projects. The CFI considers all contributions made by an eligible institution to a project to be a cash contribution.

CFI will recognize eligible infrastructure items involving in-kind contributions at fair market value. In-kind contributions must be eligible contributions in the acquisition and development of infrastructure. In-kind contributions to the operating costs of research will not be accepted. In-kind contributions may include, in whole or in part, the value of capital items (e.g. equipment and facilities) that eligible external partners donate to the eligible institution. The value, in whole or in part, of certain non-capital eligible items that are needed to bring the infrastructure into service, such as professional services and training, may also be included as in-kind contributions.

Pricing obtained through multiple quotations, competitive bid or Sole or Single Source Certification for each item must be submitted to the CFI, and once the itemized list has been compiled, ORS will include it in the application to be submitted to the CFI for consideration.  Included in this submission is any in-kind contribution made by vendors.

Fair Market Value Defined

CFI defines fair market value as:

“The price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties dealing at arm’s length who are fully informed and not under compulsion to transact. The fair market value is the price an institution would normally be expected to pay in such circumstances, after normal and educational discounts, but prior to consideration of any special CFI discount that may be offered as a contribution towards a CFI-funded project.”

Strategic Procurement Services will advise as to how fair market value can be assessed.

Valuation Method

The valuation method depends on the nature of the item. In some cases, the fair market value of the item is known. In other cases, the value must be assessed using commonly accepted methods.

Information regarding special requirements and documentation practices for the valuation process are outlined in Section 6.5 of the Policy and Program Guide (PDF).

CFI has two in-kind contribution categories :

Individual in-kind contributions less than $100,000

Individual in-kind contributions between $100,000 and $500,000 that represent 10% or less of total eligible product costs
Individual in-kind contributions between $100,000 and $500,000 that represent more than 10% of total eligible project costs

All individual in-kind contributions larger than $500,000

In order to satisfactorily assess and support the valuation of in-kind contributions, Strategic Procurement Services requires that both educational discounts and special discounts are clearly identified on supporting documentation provided by vendors through the purchasing and tendering processes.

The only way to ensure fair market value of funds expended, is to compare values quoted by competitors and assess these for reasonableness.  This is particularly important for Category 2 in-kind contributions.