Volunteers, Valuable but Invisible to Accountants?

Abstract

Volunteer input is vital for achieving the organizational objectives of third-sector service-providers, but volunteers are often invisible in these organizations’ financial reports. Preparation cost and a lack of robust models have previously limited the valuation of volunteer time and yet board members and policy-makers benefit when these donations are evaluated.

Volunteer invisibility potentially leads to under-resourcing of third-sector organizations when funders receive incomplete information. This paper acknowledges valuation challenges and assesses models developed by Mook et al. (2003) for usefulness. It analyzes volunteer effort in New Zealand early childhood education centers to extrapolate a more informed understanding of the cost of childcare services.

Keywords: Valuing volunteers, accounting for volunteers