The Importance of Tracking Volunteer Hours
This can be a very useful tool for organizations
Nonprofit organizations should be fully aware that volunteer or service hours are not recordable in-kind transactions unless they meet certain criteria. Primarily, the hours in question must be related to a service that requires a specialized skill – services for which the organization would otherwise need to purchase from an individual possessing those skills. Often, these restricted accounting standards deter nonprofits from tracking and monetizing any volunteer hours because of an assumed lack of purpose. Tracking of volunteer hours, however, can be very useful to nonprofit organizations.
Community Impact Reporting
Nonprofits often complete an annual report and/or update their website to educate their supporters on the community impact of their mission and programs. Often, the focus is on the recorded financial information of the organization along with services provided; however, consideration should be given to the impact volunteerism has on both the organization and the community. Highlighting the hours served, number of volunteers, and overall program impact provides the public with an understanding of the importance of volunteers at your organization. It also highlights how volunteers were able to serve a portion of your mission without the use of funding. Without monetizing your volunteer hours, it is also difficult to ascertain the true cost of programming.
The practice of reporting and providing volunteer information to the community (via your website, newsletters, etc.) makes your organization a more attractive option for potential volunteers. The public will notice that you appreciate their efforts and understand the importance of their time to your organization.
Please select this link to read the complete article from OSAP Member VonLehman CPA & Advisory Firm.