Nonprofit and community-based organizations are aware of the importance of volunteers and the hours they give. Without these volunteers and their time, most programs probably couldn’t run or provide the services needed to meet their missions. It’s important for organizational leadership to understand the impact its volunteers have in benefiting their missions and our watersheds.
Volunteer management is not just about volunteer recruitment and reports. Good volunteer management can pay off for nonprofits in a variety of different ways and the tracking of volunteer hours can really benefit organizations. Through the tracking of volunteer hours an organization can demonstrate a program’s impact, secure more funding, determining the real cost of operations, and show public support.
Putting a dollar value on volunteer hours will never do justice to their true worth, but it is just one way for us to show the contributions individuals and organizations have made in our communities. The estimate helps acknowledge the individuals who dedicate their time, talents, and energy to making a difference.
This valuation demonstrates the true cost of your programs. Since volunteers are not paid for their donations of time, it may appear that your organization’s operations and programs do not cost that much money. However, when you value a volunteer’s time at their respective value you will see how much it would have cost to hire someone at that same rate, and the true cost of running your programs.
Many funders recognize volunteer time as a source of community support and can often be used as potential monetary matching. So, if grants are an important source of revenue for your organization, or if you are considering applying for funding in the future, your organization should consider tracking the hours that your volunteers contribute to your organization.
Understanding the monetary value of volunteering can help nonprofits better communicate their community impact with evidence-based data. This can lead to more funding. With more funding, nonprofit organizations can do more work toward their mission and attract more volunteers who are eager to help a worthy cause.
Knowing how much time is spent on certain tasks or projects can help an organization measure performance. Just as for-profit companies use key performance indicators (KPI’s) the number of hours used for certain tasks can be used when analyzing organizational development activities so that volunteer time contributions are used wisely.
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