§ 66.24
(1) Special standards for third party in-
kind contributions. (i) Third party in-
kind contributions count towards sat-
isfying a cost sharing or matching re-
quirement only where, if the party re-
ceiving the contributions were to pay
for them, the payments would be allow-
able costs.
(ii) Some third party in-kind con-
tributions are goods and services that,
if the grantee, subgrantee, or con-
tractor receiving the contribution had
to pay for them, the payments would
have been an indirect costs. Costs shar-
ing or matching credit for such con-
tributions shall be given only if the
grantee, subgrantee, or contractor has
established, along with its regular indi-
rect cost rate, a special rate for allo-
cating to individual projects or pro-
grams the value of the contributions.
(iii) A third party in-kind contribu-
tion to a fixed-price contract may
count towards satisfying a cost sharing
or matching requirement only if it re-
sults in:
(A) An increase in the services or
property provided under the contract
(without additional cost to the grantee
or subgrantee) or
(B) A cost savings to the grantee or
subgrantee.
(iv) The values placed on third party
in-kind contributions for cost sharing
or matching purposes will conform to
the rules in the succeeding sections of
this part. If a third party in-kind con-
tribution is a type not treated in those
sections, the value placed upon it shall
be fair and reasonable.
(c) Valuation of donated services—(1)
Volunteer services. Unpaid services pro-
vided to a grantee or subgrantee by in-
dividuals will be valued at rates con-
sistent with those ordinarily paid for
similar work in the grantee’s or sub-
grantee’s organization. If the grantee
or subgrantee does not have employees
performing similar work, the rates will
be consistent with those ordinarily
paid by other employers for similar
work in the same labor market. In ei-
ther case, a reasonable amount for
fringe benefits may be included in the
valuation.
(2) Employees of other organizations.
When an employer other than a grant-
ee. subgrantee, or cost-type contractor
furnishes free of charge the services of
28 CFR Ch. | (7-1-10 Edition)
an employee in the employee’s normal
line of work, the services will be valued
at the employee's regular rate of pay
exclusive of the employee’s fringe ben-
efits and overhead costs. If the services
are in a different line of work, para-
graph (c)(1) of this section applies.
(d) Valuation of third party donated
supplies and loaned equipment or space.
(1) If a third party donates supplies,
the contribution will be valued at the
market value of the supplies at the
time of donation.
(2) If a third party donates the use of
equipment or space in a building but
retains title, the contribution will be
valued at the fair rental rate of the
equipment or space.
(e) Valuation of third party donated
equipment, buildings, and land. If a third
party donates equipment, buildings, or
land, and title passes to a grantee or
subgrantee, the treatment of the do-
nated property will depend upon the
purpose of the grant or subgrant, as
follows:
(1) Awards for capital expenditures. If
the purpose of the grant or subgrant is
to assist the grantee or subgrantee in
the acquisition of property, the market
value of that property at the time of
donation may be counted as cost shar-
ing or matching,
(2) Other awards. If assisting in the
acquisition of property is not the pur-
pose of the grant or subgrant, para-
graphs (e)(2) (i) and (ii) of this section
apply:
(i) If approval is obtained from the
awarding agency, the market value at
the time of donation of the donated
equipment or buildings and the fair
rental rate of the donated land may be
counted as cost sharing or matching.
In the case of a subgrant, the terms of
the grant agreement may require that
the approval be obtained from the Fed-
eral agency as well as the grantee. In
all cases, the approval may be given
only if a purchase of the equipment or
rental of the land would be approved as
an allowable direct cost. If any part of
the donated property was acquired
with Federal funds, only the non-fed-
eral share of the property may be
counted as cost-sharing or matching.
(ii) If approval is not obtained under
paragraph (e)(2)(i) of this section, no
amount may be counted for donated
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