Have you ever wondered just how much volunteer time is worth? While volunteers may not get paid for the valuable efforts they put into an organization, simply assuming that the minimum wage or some other arbitrary dollar figure can be attributed to your volunteers’ time would be inaccurate. In fact, there has already been research conducted on the monetary value of volunteer time by Independent Sector, which is comprised of knowledgeable foundations, charities, and individuals researching issues that affect nonprofit organizations.
In 2016, Independent Sector concluded that volunteer time was worth approximately $24.14 per hour in the U.S. In Utah specifically, volunteer time is worth $24.27 per hour.
This figure is important for working with the Financial Accounting Standards Board (FASB) to show what level of support a nonprofit is receiving from its community. Nonprofits can report volunteer time on their external financial statements if the volunteer time fulfills one or both general conditions set by the FASB: 1) The volunteer created/enhanced non-financial assets (for the nonprofit or community at large), and/or 2) The project needed specialized skills that would have required payment if a volunteer hadn’t provided those services free-of-charge (e.g., accountants, medical professionals, lawyers, craftsmen, etc.).
By following the guidelines set by an authoritative source like Independent Sector, nonprofit organizations will be better equipped to deal with financial matters involving volunteer time with the IRS or external financial records.