Download - Relative Impact: Volunteer ROI Part 1 – More volunteer hours is not always a good thing

The Relative Impact ROI Model@BetterImpact

This workshop is sponsored by

Creators of Volunteer Impact, software to help you manage and track your volunteers


2012 2013 2014

Volunteer hours 40,000 30,000 20,000


2012 2013 2014

Volunteer hours Trees planted

40,000 500,000

30,000 500,000

20,000 500,000

In 2013, fewer volunteer

hours were spen

t

accomplishing the sam

e thing

as other years


Actions ≠ Intentions

Actions = Intentions

*

Your mission

depends

on it


But that’s not how we’ve

always done it


Tim Hortons coffee

ROI 101 - The Nature of Opportunity Costs








We should spend our

volunteers’ time

as efficiently

as we spend our ca

sh.



Outsource $600

TOTAL COST $600

Engage Volunteer $250 Maintenance & Gas $200

TOTAL COST $450

ROI 101 - Time and money are both inputs


If we don’t count

volunteer time

as part of the

cost,

we’re saying

it has zero val

ue.

Outsource $600

TOTAL COST $600

Engage Volunteer $250 Maintenance & Gas $200 20 Hours @ $15 / hr $300

TOTAL COST $750

ROI 101 - Time and money are both inputs


Current

Book shelver cost Computer assistant cost Combined role cost Total cost

Books shelved People helped at the computers

$60,000 $40,000

$100,000

75,000 10,000

Process Improvement


Current Proposed

Book shelver cost Computer assistant cost Combined role cost Total cost

Books shelved People helped at the computers

$60,000 $40,000

$100,000

75,000 10,000

$80,000 $80,000

75,000 10,000

Process Improvement

Is there anything you c

ould do

similar to this in your org

anization?


Process Improvement


From this ...

... to this.

A Fundamental Shift in Mindset


$300

Shopper A

$200

Shopper B

ROI 101 - Outputs Compared to Inputs


$300

1 Hour Shopper A

$200

5 Hours Shopper B



$300

1 Hour Shopper A

$200

5 Hours Shopper B



Inputs Outputs

If you put $1 in and get $1.02 in return…

…thats is an ROI of 2%.



Inputs Outputs


…thats is an ROI of 10%.



Inputs Outputs


…thats is an ROI of 25%.-



Inputs Outputs



Tax returns completed 20,000Outputs

Retail value of 1 tax return x $50 Value of all tax returns $1,000,000

Total volunteer time cost $500,000Inputs Cash costs

Total cost

+$50,000

$550,000

Every $1 invested, generated $1.82That’s an ROI of… 82%

Example Calculations


Tax Returns Completed ($50) Credit consultations ($1000) Total Outputs

Total Costs (Vol. time + cash)

Every $1 invested, generated

That’s an ROI of…

20,000 300

$1,000,000 $300,000

$1,300,000

$700,000

$1.86 86%



Inputs Outputs


Drives to appointments ($40)

Cash Expenses Volunteer time (@ $20/hr) Total Costs Every $1 invested, generated That’s an ROI of…

1,000 $40,000

$30,000 $40,000

$70,000

$0.57 -43%

Inputs

Outputs

A negative ROI might be

an indication that the

program should be

discontinued.



2012Appointments serviced 2,100Average cab fare (both ways) $50Value of waiting at the appt n/aTotal value of appts serviced $105,000

Volunteer hours cost $85,000Cash costs $15,000Total volunteer engagement costs

$100,000Every $1 invested, generated… $1.05



2012 2013Appointments serviced 2,100 1,400Average cab fare (both ways) $50 $50Value of waiting at the appt n/a $50 Total value of appts serviced $105,000 $140,000

Volunteer hours cost $85,000 $85,000Cash costs $15,000 $15,000Total volunteer engagement costs

$100,000 $100,000Every $1 invested, generated… $1.05 1.50



2012 2013Appointments serviced 2,100 1,400Average cab fare (both ways) $50 $50Value of waiting at the appt n/a $50 n/a Total value of appts serviced $105,000 $140,000

$70,000

Volunteer hours cost $85,000 $85,000Cash costs $15,000 $15,000Total volunteer engagement costs

$100,000 $100,000Every $1 invested, generated… $1.05 1.50

$0.70



Fun-run Registrations Donations via runners Total Outputs $ spent on ads, logistics etc

Total costs Profit Every $1 invested, generated… Return On Investment

$10,000 $15,000

$20,000 $25,000

$20,000 $5,000 $1.25 25%



Fun-run Registrations Donations via runners Total Outputs $ spent on ads, logistics etc Committee 10 x 10 x 3hrs @ $50 Event volunteers 100 x 5hrs @$15 Total costs Profit Loss Every $1 invested, generated… Return On Investment

$10,000 $15,000

$20,000 15,000 7,500

$25,000

$42,500 -$17,500

$0.59 -41%



Fun-run Registrations Donations via runners Total Outputs $ spent on ads, logistics etc PROFIT

$10,000 $15,000 $25,000

-$20,000 $5,000

Committee 10 x 10 x 3hrs @ $50 Event volunteers 100 x5 hrs @$15 TOTAL FREE LABOR

$15,000 $7,500

$22,500


This organisation brags about a total of $27,500 in gains ($5,000 in cash proceeds and + $22,500 in “free labor”). In reality lost 41 cents for every dollar they invested.

Based on the $5,000

in cash

proceeds and the 800

volunteer hours,

the value

added for each volunteer

hour was ONLY

$6.25 per hou

r.


Thank you to all our donors!

This year we spent 25% more

$$$ than we did last year :)

EnviroOrg

EnviroOrg

Thank you to all our volunteers! This year we had 25% more hours than we had last year :)

Thank you to all our volunteers! This year we used 25% more of your time than we did last year:)

www.BetterImpact.com/ROI

Join the conversation in the forums at community.BetterImpact.com

http://www.BetterImpact.com/ROI

http://community.BetterImpact.com