Yes, the word 'participating' functions as a gerund, a verbal noun.

As a gerund, 'participating' is a common noun, a general word for an ongoing current action.

The word 'participating' is the present participle, present tense of the verb to participate. The present participle of the verb also functions as an adjective and a gerund.

Examples:

Our school is participating in the regional science fair. (verb)

Here is a list of the participating schools. (adjective)

Participating will give our students a broader perspective. (noun, subject of the sentence)