Understanding the Value of Volunteer Time

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Understanding the Value of Volunteer Time
Dr. Cathy Barr, Director Insurance Liability
Resource Centre for Nonprofits A Workshop for
Nonprofit Organizations February 26, 2008
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Reasons for NOT Calculating the Economic Value of
Volunteers

• Its too difficult.
• It takes too much time.
• Theres no way to accurately determine the value
  of so many different volunteer activities.
• Attaching a dollar value to volunteer
  contributions devalues them.
• It may be threatening to paid staff.

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Reasons FOR Calculating the Economic Value of
Volunteers

• It makes volunteer contributions visible and
  tangible.
• It helps you show how your volunteers allow you
  to do more than your budget would otherwise
  allow.
• It helps you demonstrate the value of your
  volunteer program.
• It helps you show the extent of community support
  for your organization.

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Where You Can Use This Information

• Funding proposals
• Reports to funders (governments, corporations,
  foundations)
• Fundraising campaigns
• Financial statements
• Volunteer recruitment campaigns
• Project, program or event evaluations
• Reports to your Board
• Lobbying efforts

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Basic Steps

• Create volunteer position descriptions.
• Track the number of hours contributed by
  volunteers in each position.
• Multiple the number of hours contributed by
  volunteers in each position by a wage appropriate
  for that position.

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Beyond the Basics

• You can also go beyond the basics. To do that,
  you need other types of information, such as
• The total value of salaries paid to full- and
  part-time staff.
• The total value of benefits provided to staff.
• The total amount your organization spends on its
  volunteer program.
• The total value of volunteers non-reimbursed
  expenses.

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Human Resource Productivity Measures

• These measures describe how volunteers extend
  your organizations personnel resources beyond
  your existing budget.
• Estimate of the Value of Volunteer Activity
  (EVVA)
• True Value Added to Personnel (TVAP)
• Full-time Year-round Job Equivalent (FYJE)
• Percent Personnel Value Extended (PPVE)

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Volunteer Program Efficiency Measures

• These measures help you evaluate and explain
  explain the value of your volunteer program.
• Organization Volunteer Investment Ratio (OVIR)
• Volunteer to Paid Staff Ratio (VPSR)

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Community Support Efficiency Measures

• These measures help you demonstrate the extent of
  community support for your organization.
• Volunteer Capital Contribution (VCC)
• Community Investment Ratio (CIR)

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Group Activity

• Calculate EVVA
• Determine the most appropriate SOC classification
  for each volunteer position
• Look up the wage rate associated with each SOC
  classification.
• Multiply the total number of hours contributed by
  volunteers in each position by the hourly wage
  rate assigned to each position.
• Sum the products of these calculations.
• Calculate at least two other measures.

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Volunteer Value Calculator

• Free online tool.
• Includes built-in wage rate information.
• Performs all calculations for you based on the
  information you enter.
• http//volunteercalculator.imaginecanada.ca/

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