The premier economics blog

31 The cost of volunteering

·

, , ,

This article will describe just how expensive it is to do volunteer work, in terms of fairly quantifiable cost of volunteering. Also explaining that working free of charge is not a adamant prerequisite.

We are assuming that all volunteer work is fully without any form of compensation, monetary or otherwise. That we even make this assumption is a scandal; if something does not add value you won`t be asked to do so. Most volunteer organisations make costs to attract more staff, so a value or, at minimum, demand, is implied. You are basically giving away your time for free, whilst someone at the top makes a nice buck. Most content can apply to doing someone a favour.

This article assumes that volunteer work is done at a charity, as most other legal forms are created, or are assumed so, for the reason of making money. Which would be weird if done by people who get none themselves.

A few examples of costs that you make yourself:

  • Wear and tear of clothing worn whilst volunteering. This clothing also needs to be washed more, increasing its depreciation and costing water+electricity+detergent for the process of washing.
  • Depreciation of transport; your car or bike will have more miles, gas also costs money. Could be replaced by fare price of public transportation, which is a more direct and quantifiable cost that you feel directly.
  • Usage of private laptop and phone. This is a combination of electric usage and general depreciation from use. Most organisations require paperwork to be filled in, printed or emailed, which adds to this bill before you even start.
  • Time spent thinking about your function and the people you deal with, in excess of your commitment with them.

Expenses of the organisation, just to point out that they do have spending capacity:

  • Coffee and snacks, often presented as form of payment to volunteers.
  • A paid manager and upper level staff (that most managers are perceived as adding little value is rather ironic). High ranking executives do still declare expenses, so they have got some flexibility build into any budget.
  • Rent and other location fixed expenses, depreciation, maintenance and such. The repair guy sometimes has to be brought in and he does not work for nothing.
  • Supplies for you to work with. Exactly the same as you would have in a paid position.

And to make sure that we all know how well funded they are, here are a few examples of common sources of revenue:

  • Selling core activities; the author has made candles and assisted with horse riding lessons*, all of which customers were charged for. Selling advise/expertise or a different non-tangible service is also a good possibility. This would reduce the location expense, leaving even more profit for the people on top.
  • Charitable corporations; bigger ones that have a lot of private individuals as customers usually have their own fund to dull out cash. It gives them a nice tax break, and as a result of that, very cheap PR. Companies that spend a lot on charity actually do better because of how they are perceived, that they do this out of operational profit (meaning that you pay for this as a customer) doesn`t bother people.
  • Governmental funds; left wing politicians love spending on such things. Local politicians can also support a volunteer based operation, but they are biased form personal experience; so might not pick the one you work at.
  • There have regularly been instances where a charity opens its doors to the neighbourhood in an attempt to get donations/clientele from them. Relations of volunteers are regularly invited to squeeze a few pennies from them. Selling the work of volunteers is a good example of raising funds at these occasions. And no, volunteers do not get a percentage of their own creation`s proceed!
  • Getting the charitable organisation tax work requires money at first, but is a huge cash bonus in the end. Call it an investment for the less scrupulous: Getting this special tax treatment means considerably more donations (donators get a tax break).

 

*This was volunteer work which he did not do voluntary, governmental organisations and their friends forced this on him. This is also how he knows the above to be fully accurate.

Don’t miss our latest articles

Read our privacy policy for more info. By subscribing you are agreeing to it.

Check your inbox or spam folder to confirm your subscription.