Monetary Value of Volunteer Time
Estimated financial value of volunteer hours contributed, based on replacement cost or national living wage
What is Monetary Value of Volunteer Time?
Monetary value of volunteer time is an estimate of what it would cost to pay for the hours that volunteers give. It puts a money figure on volunteer contribution.
It helps charities show the scale of their volunteer effort to funders and the public and recognise the value people give freely.
How this KPI is measured
- Function
- Human Resources
- Sub-function
- Volunteer Management
- Industry
- Not-for-Profit / Charity
- Type
- Lagging
- Impact
- Financial control
- Unit
- $
- Measurement frequency
- Annual
- Formula
- Total volunteer hours × Hourly replacement rate (e.g. national living wage or sector benchmark)
How to calculate it
Multiply total volunteer hours by an hourly replacement rate, such as the national living wage or a sector benchmark.
For example, if volunteers gave 20,000 hours and the replacement rate is 12 per hour, the value is 240,000.
Choose the rate and explain it, and remember that it is a notional figure and not actual income.
Where it is used
Reporting to funders
Show contribution.
Communicating impact
Recognise volunteers.
Planning resources
Understand the value of the volunteer base.
How to improve it
Tips and common mistakes
- It is a notional value, not income.
- Be clear about the rate you use.
- Do not use it in a way that undervalues the purpose of volunteering.
More Human Resources kpi library
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