Under co-funded partnership, in-kind contributions "free of charge" (within the meaning of Article 2(38) of the EU Financial Regulation 2024/2509, i.e. non-financial resources made available free of charge by third parties) can also be charged to the project and contribute to the total cost of the project, based on which reimbursement rate applies.

In-kind contributions provided by third parties free-of charge may be declared as eligible direct costs by the beneficiaries that use them (under the same conditions as if they were their own), provided that they concern only direct costs and that the third parties and their in-kind contributions are set out in Annex 1 (or approved ex-post in the periodic report, if their use does not entail changes to the Agreement, which would call into question the decision awarding the grant or breach the principle of equal treatment of applicants; ‘simplified approval procedure’).

Further guidance on FSTP in EU grants is available here.

However, in the context of co-funded European Partnerships, the term “in-kind contributions” is sometimes (wrongly) used to refer to additional, non-call activities. Such additional activities are eligible for funding as well, provided that they comply with the eligible cost categories laid out in the Model Grant Agreement, contribute to the objectives of the partnership, and are included in work plans.