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Evaluating
Working out the economic cost of volunteering
It is possible to work out the economic value that volunteers make to your organisation by multiplying the total volunteer hours by an hourly wage rate.
This could be the national minimum wage or median hourly wage (obtain the first from www.hmrc.gov.uk/nmw and the second from Annual Survey of Hours and Earnings (ASHE) available at www.statistics.gov.uk ) The minimum wage probably underestimates the value, while the median wage may overestimate it. You can calculate both and present them as a range, or decide on a reasonable figure between the two. Volunteering England provide the following templates.
Templates for calculating volunteer value
Using a single wage rate
| A | B | C | D | E | F |
Total number | Average hours per week per volunteer | Weeks worked per year | A x B x C | Hourly | D x E = Total volunteer value (£) |
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Using different volunteer roles and wage rates
A | B | C | D | E |
Volunteer role | Equivalent | Hourly wage rate for B (£) | Total hours | C x D = Total value of A (£) |
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Calculating volunteer costs
The Institute of Volunteering Research (IVR) publish a guide VIVA (Volunteer Investment and Value Audit) which enables organisations to accurately measure the economic impact of volunteering by examining their individual situations. VIVA also estimates an hourly wage rate based on the type of volunteering work being undertaken. For further information www.ivr.org.uk
VIVA contains the following table which is is helpful in calculating the costs of involving volunteers. To work out the economic value
Category of expenditure | Cost details | Amount (£) |
1. Volunteer services manager/co-ordinator
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2. Volunteer manager's assistant/secretary | Annual salary
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3. Other paid staff | % of annual salary corresponding to % of time spent on managing or supporting volunteers
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4. Advertising and recruitment | Cost of printing leaflets, posters etc.,
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5. Induction and training | Costs of materials, lunches, childcare, staff time (unless already included, above) and fees paid for external training
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6. Volunteers' expenses | Travel and out of pocket expenses reimbursed to volunteers
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7. Administration, support and recognition | Volunteer newsletters, meetings, socials, parties, awards, certificates, office expenses and other non-salary costs
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8. Supplies and equipment | Clothing, badges, materials and equipment provided free to volunteers for their volunteering
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9. Food and accommodation | Costs of drinks, food and accommodation provided free while volunteering
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10. Volunteer insurance | Cost of the volunteer insurance policy or a percentage of the organisation's overall insurance policy, to cover volunteers
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11. Volunteer-related building costs or expenses | Rent and utility costs where buildings are maintained solely for volunteers
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Total annual expenditure |
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