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.

In the proposal of the European Commission for Horizon Europe 2028-2034 , one default implementation format for European Partnerships is suggested, which will integrate the two current work programme-based implementation forms, i.e. co-programmed and co-funded. The proposal foresees that they will be based on a Memorandum of Understanding (MoU) and be implemented via the future Horizon Europe work programme. The principle of co-funded partnerships – co-programming and co-funding joint R&I programmes with national and regional funders - remains, but would be implemented differently, addressing implementation challenges encountered by co-funded partnerships today. The option of establishing treaty-based instruments in exceptional and well-justified cases also remains. Read more about the latest FP10 developments here.

In-kind contributions have a specific definition set out in the Financial Regulation, which also applies to Horizon Europe, i.e. it is used for non-financial resources made available free of charge by third parties. For co-funded partnerships under Horizon Europe, the Grant Agreement allows beneficiaries to charge these costs even if they are free of charge. Additional activities in co-funded partnerships encompass all non-call activities that are necessary to implement the action, and can be reimbursed if they fulfil the requirements and fit into the cost categories set out in the Model Grant Agreement. All other incurred costs are against payment (e.g. personnel costs for seconded staff). Costs must be related to the Description of Work and be necessary for the implementation of the action and compliant with the Grant Agreement.