20 July 2006

Value of Volunteer Contribution

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According to Independent Sector, the average value of volunteer hours for non-profit organizations is $18.04 per hour in 2005. There is more detail

Further information on wages for specific functions and skill areas can be found at the US Department of Labor, Bureau of Labor Statistics.

What can you do with this kind of information? Here is a start:

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, 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.

You may need to give your accounting professional this kind of information, especially if they do not already specialize in nonprofit accounting.

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