The economic value of volunteers to nonprofit organizations
Author:
- 17 June 2009
- journal article
- research article
- Published by Wiley in Nonprofit Management and Leadership
- Vol. 19 (4) , 491-506
Abstract
This article applies microeconomic theory to the problem of calculating the economic value of volunteers to nonprofit organizations. It finds weaknesses in two popular valuation metrics: replacement cost and demand price. It argues for a method that measures the economic value of volunteer time by the impact it has on an organization's revenue, through either fundraising or producing goods and services. An Australian case study illustrates the method, and a survey of U.S. nonprofits tests the generality of the assumptions. The concluding section offers suggestions for management practice and further research.Keywords
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