(Category: costs-eligilbilty)
FEMA allows Public Assistance applicants to utilize the value of third-party Donated Resources—which include volunteer labor, donated equipment, and donated materials—to offset the non-Federal local cost share of eligible Emergency Work (Categories A and B) and Direct Federal Assistance (DFA). This program helps minimize out-of-pocket expenses, though the credit is strictly capped at the total non-Federal share of the applicant's emergency work so that the Federal share never exceeds actual out-of-pocket costs. Any excess credit from one project may be dynamically applied to the applicant's other emergency projects.
To qualify, resources must come from a third party (private entities or individuals who are not paid employees of the applicant or government) and be used exclusively for eligible Emergency Work. Meticulous tracking is required, including descriptions of the work, specific locations, and exact hours. Volunteer labor is valued at the applicant's standard straight-time hourly rate (plus fringe benefits) for similar work, or the local market rate if no such position exists; overtime or premium rates are not credited. Donated equipment is valued using official FEMA equipment rates, while donated supplies are verified at current commercial market rates. Resources provided by Federal agencies, funded via a Federal award, or utilized for Permanent Work are strictly ineligible for cost-share offsets.