When creating a budget for a grant application, what are the two categories of contributed income?

In the context of creating a budget for a grant application, contributed income is typically categorized into two main types: cash and in-kind contributions. Cash contributions represent monetary donations or funding that can be directly used for the project, while in-kind contributions refer to non-monetary assistance, such as goods, services, or volunteer time provided to support the project.

This distinction is crucial for grant applications because funders often look for a clear understanding of total project costs and the funding available outside of the primary grant request. Demonstrating a balance of cash and in-kind contributions can enhance the project's appeal to funders by showing that there is community support and resource commitment beyond the requested financial assistance.