Wednesday, May 9, 2012
The Value of Volunteer Time
The estimated value of volunteer time for 2011 is $21.79 per hour. The estimate helps acknowledge the millions of individuals who dedicate their time, talents, and energy to making a difference. Charitable organizations can use this estimate to quantify the enormous value volunteers provide.
The value of volunteer time is based on the average hourly earnings of all production and nonsupervisory workers on private nonfarm payrolls (as determined by the Bureau of Labor Statistics). Independent Sector takes this figure and increases it by 12 percent to estimate for fringe benefits.
Charitable organizations most frequently use the value of volunteer time for recognition events or communications to show the amount of community support an organization receives from its volunteers.
According to the Financial Accounting Standards Board (FASB), the value of volunteer services can also be used on financial statements –- including statements for internal and external purposes, grant proposals, and annual reports –- only if a volunteer is performing a specialized skill for a nonprofit. The general rule to follow when determining if contributed services meet the FASB criteria for financial forms is to determine whether the organization would have purchased the services if they had not been donated. Accounting specialists may visit FASB’s website for regulations on use of the value of volunteer time on financial forms: http://www.fasb.org/pdf/fas116.pdf.
Posted by Kathy Grochow, NRS, St. Cloud