TITLE:	Donated Resources

DATE OF ISSUANCE:  

PURPOSE:  Establish the criteria by which applicants will be credited
for volunteer labor, donated equipment, and donated materials used in
the performance of eligible emergency work – Categories A and B.  

SCOPE AND EXTERNAL AUDIENCE:  This policy is applicable to all major
disasters and emergencies declared on or after the publication date of
this policy.  It is intended for Federal Emergency Management Agency
(FEMA) personnel involved in making eligibility determinations under the
Public Assistance (PA) Program.

AUTHORITY:  Sections 403(a), Essential Assistance and 502, Federal
Emergency Assistance, of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Stafford Act), 42 U.S.C. 5121 – 5206, as
amended, and Title 44 Code of Federal Regulations (CFR) §13.24,
Matching or cost sharing and OMB Circular A-87

POLICY:  Donated resources used on eligible work that is essential to
meeting immediate threats to life and property resulting from a major
disaster may be credited toward the non-Federal share of grant costs
under the PA program.  Donated resources may include volunteer labor,
donated equipment and donated materials.

Donated resources are eligible to offset the non-Federal share of
eligible Categories A and B costs if they meet the following criteria:

The donated resources must be documented by a local public official or a
person designated by a local public official.  The documentation must
include a record of hours worked, the work site, and a description of
work for each volunteer, and equivalent information for equipment and
materials.  Regional Administrators may establish alternate
documentation requirements when required by an extraordinarily demanding
situation.

The donated resources must apply to emergency work that has been
organized by an eligible applicant and is eligible under the PA program.
 Examples include, but are not limited to:

Removing eligible debris.

Filling and placing sandbags.

   Donating equipment to raise or reinforce a levee. 

Donating materials, such as rocks or sand.

Search and rescue when part of an organized search and rescue operation.

   Professional safety inspections.

Mass care and sheltering for disaster survivors.  

The donated resources must be documented on one or more Project
Worksheets (PWs). 

Value of Resources.  44 CFR 13.24, Matching or cost sharing, addresses
how donated resources are to be valued.  The following instructions are
based on that part of the CFR: 	

Volunteer Labor:  The value of volunteer labor is discussed in 44 CFR
13.24 (c) (1), Matching or cost sharing. Valuation of donated services. 
The rate placed on volunteer labor should be the same rate (plus
reasonable fringe benefits) ordinarily paid for similar work within the
applicant’s organization.  Premium rates will not be used.  If the
applicant does not have employees performing similar work, the rate
should be consistent with those ordinarily performing the work in the
same labor market.  To determine the value of volunteer labor, the labor
rate should be multiplied by the total number of volunteer labor hours. 
Credit may be given for volunteer labor in any field reasonably required
for emergency work, including the work of volunteer equipment operators.


Donated Equipment:  To determine the value of donated equipment,
determine the number of hours that each piece of donated equipment was
used and multiply it by the applicant's or FEMA's Equipment Rate,
whichever is lower.  The out-of-pocket cost to operate the equipment may
be claimed as a donation for credit under this policy unless it is
included in a reimbursed equipment rate. 

Donated Materials:  Only materials donated by third party entities are
eligible for credit.  Typical donated materials include sand, dirt, and
rocks, and other materials associated with flood-fighting activities. 
To determine the value of donated materials, use the current commercial
rate for such material based on previous purchases or information
available from vendors.  Materials donated from other Federal agencies
may not be included.

Calculations. The following guidance is to be used for calculation
purposes:

 

"Total project cost" means the out-of-pocket costs (labor, materials,
and contracts) plus the value of donated resources (limited to the
maximum credit allowed, as defined in the next paragraph. 

The maximum credit allowed for donated resources is calculated by
dividing the non-Federal cost share percentage by the Federal cost share
percentage (e.g., 25%/75% = .333 and 10%/90% = .111) and multiplying
that factor by the out-of-pocket expenses for a particular PW or
multiple PWs.  When multiple PWs are going to be used for emergency
work, the donations credit (with documentation listing each applicable
emergency work PW) may be placed on one "credit" PW after all emergency
work is completed.

The documented donations credit (not to exceed the maximum credit
allowed for donation) is to be entered on the PW as a line item of the
project cost.  Any excess credit may be distributed to other emergency
work PWs, and may not exceed the maximum allowable credit for each PW.

Limitations.

The donations credit is capped at the non-Federal share of emergency
work (Category A and Category B) so that the Federal share will not
exceed the actual out-of-pocket cost.  Any excess credit can be credited
only to other emergency work for the same applicant in the same
disaster. The value of excess donated resources cannot be credited
toward another applicant, toward other State obligations, or toward
permanent work. 

A State may claim credit for the value of donated resources only
according to the disaster cost-share agreement for the non-Federal share
of cost for the eligible work.  Credit for donated resources may not be
applied to any work performed during a 100% Federally-funded period
because the non-Federal share for that period would be zero.

Reasonable logistical support for volunteers doing eligible work may be
considered an eligible cost or donations credit by the Regional
Administrator.

Donated resources submitted for credit toward the non-Federal share may
not be from another Federal grant or from other Federally funded
sources.

RESPONSIBLE OFFICE:  Recovery Directorate, Public Assistance Program.

SUPERSESSION:  For all disasters declared after the date of issuance in
Paragraph II, this policy supersedes DAP 9525.2, Donated Resources dated


April 9, 2007, and all previous guidance on this subject.

REVIEW DATE:   This policy will be reviewed 3 years from the date of
issuance in accordance with Directive 112-12.

					_____________________________

Deborah Ingram

Assistant Administrator

Recovery Directorate

		RP9525.2

RECOVERY POLICY 

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