How do I document in-kind match for a grant?
If your grant requires match or cost share, every dollar you count needs a record: what was given, by whom, when, how you valued it and what proves it. Here is a log a small nonprofit can keep in a spreadsheet, and the parts of the federal rule it is built on.
The method
- Find the match requirement and the funder's definitions. Search the award for "match", "matching", "cost share", "cost sharing" and "in-kind". Write down the total or percentage, whether cash and in-kind both count, the period in which match can be earned, how it is reported and whether the funder wants it in the approved budget.
- Decide what is allowed to count. As read on 2026-10-26, 2 CFR 200.306(b) says a federal agency or pass-through entity must accept cost sharing, including cash and third-party in-kind contributions, when it: is verifiable in your records; is not counted for any other federal award; is necessary and reasonable for the award's objectives; is allowable under the cost principles; is not paid by the federal government under another federal award (with one exception for statutes that say otherwise); is in the approved budget when the agency requires it; and conforms to the other provisions of the part. Foundations and states set their own rules, so check theirs.
- Open one match log for the award. One row per contribution. Columns: date, contributor, type (cash, volunteer time, donated goods, donated space), description, quantity, unit value, total, how you valued it, where the proof is filed, who recorded it and which award it counts toward.
- Value volunteer time at the going rate. As read, 200.306(e) lets volunteer services from third-party professional and technical personnel, consultants and other labor count when the service is necessary for the program, at rates consistent with what you pay for similar work, or, where you have no such staff, with the local labor market. Keep a sign-in sheet with the date, hours and task, and write the hourly rate and where it came from.
- Value donated goods and space cautiously. As read, donated property from third parties must not be valued above its fair market value at the time of donation (200.306(g)), donated space must not exceed the fair rental value of comparable space as established by an independent appraisal (200.306(i)(3)) and loaned equipment must not exceed its fair rental value (200.306(i)(4)). Use the lower, supported number, and write down how you got it.
- Get a note from every contributor. A short letter or email stating what was given, the dates or hours, the value basis and that it has not been used as match for another award. As read, 200.306(j) says the fair market value of third-party in-kind contributions must be documented and, to the extent feasible, supported by the same methods you use internally.
- Never count the same thing twice. Mark each row with the award it counts toward. A donated room, a volunteer hour or a staff day that has already been claimed on one award cannot be claimed on another.
- Total it every quarter against the requirement. Compare the running total to the pace you need. A shortfall in month three is a recruiting or fundraising task; the same shortfall at closeout is a problem you can no longer fix.
- Report it the way the funder asks, and ask before you change it. Use the funder's form for reporting match. As read, 200.308(f)(7) lists changes in the total approved cost-sharing amount among the prior approvals required for federal awards, so do not quietly lower the commitment. See how to ask a funder to change your grant budget.
- File the log and the proof with the award. Keep the log, the sign-in sheets, the contributor notes and the valuation notes in the award folder for the retention period. See how to organize grant files and how long to keep grant records.
Your award agreement and your funder's instructions are the authority on every date and requirement. This page is a working method, not legal, audit or compliance advice.
A worked example (made-up award)
A grant requires $10,000 in match over twelve months. In the first quarter, volunteers give 40 hours as tutors. The nonprofit pays its own tutors $28 an hour, so the 40 hours are logged at $1,120, with sign-in sheets filed.
A church lends a meeting room for six sessions. The nonprofit values it at $75 a session from the church's written rental rate for comparable rooms, so $450, with the church's note attached. If the award is federal, the agreement may call for an independent appraisal of donated space, so the log notes that question for the grants manager. The quarter's total is $1,570, or 15.7 percent of the requirement against a 25 percent pace. The gap of $930 goes on the agenda for the next volunteer recruiting meeting.
What a minimal match log holds (made-up layout)
- Date, contributor and type of contribution (cash, volunteer time, donated goods, donated space).
- Quantity, unit value and total, with a one-line note on how the value was set.
- The file name of the proof, such as the sign-in sheet or contributor note.
- The award it counts toward, and the initials of the person who recorded it.
Common mistakes
- Volunteer hours with no rate basis. A number with no source is the first thing questioned.
- No note from the contributor. The log says it happened; the contributor's note shows it.
- Counting one donation on two awards. Federal text, as read, says match cannot be counted for any other federal award.
- Valuing at retail or sticker price. Use fair market value at the time of donation.
- Logging it all at year end. Records made close to the event are easier to stand behind.
The faster path, and what it does not do
GrantClose is not accounting software and has no match ledger. It does not value donations or total your match. What it can do is keep the routine from slipping. Add "quarterly match log reviewed" as a recurring deliverable on the award, with one owner, a status and reminders at 30, 14, 7 and 1 days before and on the due date, and attach each quarter's log, sign-in sheets and contributor notes as evidence. At closeout you can export a ZIP per award with an index and a SHA-256 checksum per file.
- It does not calculate values or tell you whether a contribution counts.
- It holds only what you upload, up to 15 MB per file.
- It never contacts a funder.
GrantClose gives every recurring grant task one owner and a reminder schedule, and keeps the proof beside it. It does not value donations, write reports or give legal, audit or compliance advice. Free for 1 active award, 1 seat and 250 MB of files. Create a free account
Questions
What is in-kind match on a grant?
It is a non-cash contribution, such as volunteer time, donated goods or donated space, that a funder lets you count toward the share of project cost you must cover. Your agreement defines what counts.
What proof do I need for in-kind match?
A log of each contribution, the proof of the event (sign-in sheet, delivery record) and a note from the contributor stating what was given and how it was valued. For federal awards, 2 CFR 200.306(j), as read on 2026-10-26, says the fair market value of third-party in-kind contributions must be documented.
How do I value volunteer time for match?
As read, 200.306(e) says rates for third-party volunteer services must be consistent with those paid for similar work by your organization, or the local labor market when you have no such staff. Write the rate and where it came from.
Can the same donation count for two grants?
Not for federal awards. As read, 200.306(b)(2) says cost sharing must not be included as a contribution for any other federal award. Other funders set their own rules, so check the agreement.
Do I need an appraisal for donated space or property?
As read, 200.306(i) calls for an independent appraisal for donated land and buildings and for donated space (comparable space in a privately owned building in the same locality), and caps donated equipment at fair market value at donation. Check what your agreement requires.
Sources read
- 2 CFR 200.306 (Cornell LII copy of the eCFR), read on 2026-10-26 from the eCFR.
- 2 CFR 200.308 (Cornell LII copy of the eCFR), read on 2026-10-26 from the eCFR.