What is the monetary value of volunteer time?
Every April, Independent Sector publishes an estimated national value of each volunteer hour. This page includes historical national data and the value of volunteers’ contribution by state or territory.
For more statistics on volunteers in the US, see Volunteering in America, compiled by the Corporation for National and Community Service.
Nonprofits typically use the value of volunteer time to demonstrate the support they receive from their communities. Independent Sector advises that if your organization plans to report the value of volunteer services in external financial statements, including grant proposals, you will need to follow generally accepted accounting principles (GAAP), established by the Financial Accounting Standards Board (FASB), which state:
Contributions of services shall be recognized if the services received:
- create or enhance nonfinancial assets; or
- require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. Services requiring specialized skills are provided by accountants, architects, carpenters, doctors, electricians, lawyers, nurses, plumbers, teachers, and other professionals and craftsmen.
The IRS says nonprofits cannot report volunteer time as contributions in line 1 of Parts II or III of Form 990, Schedule A. Volunteer time can be described in Form 990, Part III, Statement of Program Service Accomplishments.
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Financial Accounting Standards Board (FASB) [PDF]
Accounting for Contributions Received and Contributions Made
Provides guidance for nonprofit organizations to account for volunteer services contributed to their organizations.
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IRS [PDF]
Instructions for Form 990
Provides line-by-line instructions for organizations filing Form 990.
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Independent Sector
Research: The Value of Volunteer Time
Independent Sector, a coalition of charities, foundations, corporations, and individuals, publishes research findings important to the nonprofit sector. Every year Independent Sector provides statistical information on the estimated dollar value of volunteer time.
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Urban Institute
The Nonprofit Sector in Brief 2019: Public Charities, Giving, and Volunteering
This brief funded by the Urban Institute highlights trends on private charitable contributions and volunteering.
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Blue Avocado
Tracking Volunteer Time to Boost Your Bottom Line: A Complete Accounting Guide
Written by a CPA, this blog post argues why this task is important. Discusses basic tax rules related to volunteer time, how to value, document, and report volunteer service in financial statements. Includes links to sample tracking forms and financial st Tracking volunteer time can help you meet match requirements, improve your financial statement presentations, and reduce liability.
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Bureau of Labor Statistics
Volunteering in the United States
Provides 2015 information on volunteering rates by demographic groups, total hours volunteered, types of organizations, and activities or services provided, as well as statistics on how volunteers become involved with their main organizations.
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Bureau of Labor Statistics
Wages by Area and Occupation
Provides hourly wages by occupation, which can be used to determine the value of specialized skills.