1. The Expanded Value Added Statement Accounting for the Value Added by Volunteers Laurie Mook OISE/University of Toronto April 21, 2004

2. VALUE ADDED BY VOLUNTEERS WORKSHOP Overview of Presentation  Value Added and Expanded Value Added  The Expanded Value Added Statement  Case Study of Canadian Red Cross, Toronto Region

3. VALUE ADDED BY VOLUNTEERS WORKSHOP What is Value Added?  Value added is an indicator of organizational performance  It measures the wealth that an organization creates by “adding value” to raw materials, products and services through the use of labour and capital

4. Income Statement For the fiscal year Revenues 100 Expenses(85) Profit 15 VALUE ADDED BY VOLUNTEERS WORKSHOP

5. Income Statement For the fiscal year Revenues 100 Ext. G&S (35) Employees (25) Investors(10) Amortization(10) Govt. (5) Profit 15 VALUE ADDED BY VOLUNTEERS WORKSHOP

6. Value Added Stmt For the fiscal year Revenues 100 Ext. G&S(35) Value Added 65 Employees 25 Investors 10 Govt. 5 Org. 25 VA Dist. 65 VALUE ADDED BY VOLUNTEERS WORKSHOP

7. Calculation of Value Added  Value of services – Materials/Outside Services Purchased = Value Added OR  Materials/Outside Services Purchased + Value Added = Value of Services

8. VALUE ADDED BY VOLUNTEERS WORKSHOP Value Added Statement

9. VALUE ADDED BY VOLUNTEERS WORKSHOP What is Expanded Value Added?  Value added by itself does not tell the whole story  Volunteers add value too  Expanded Value Added combines financial and social data to give a fuller picture of the social and economic impact of an organization

10. VALUE ADDED BY VOLUNTEERS WORKSHOP The Expanded Value Added Statement  Combines financial and social information to show the value added created by an organization and how that value added is distributed to different stakeholders

11. VALUE ADDED BY VOLUNTEERS WORKSHOP IYV Volunteer Value Added Project  Calculated the value added by and for volunteers at four nonprofits: Canadian Breast Cancer Foundation, Ontario Chapter Canadian Crossroads International Canadian Red Cross, Toronto Region Jane/Finch Community and Family Centre  Calculated the value added by and for volunteers at four nonprofits: Canadian Breast Cancer Foundation, Ontario Chapter Canadian Crossroads International Canadian Red Cross, Toronto Region Jane/Finch Community and Family Centre

12. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings  1,506 volunteers contributed an estimated 63,568 hours in the year of the study, or 32.6 full-time equivalents (FTE)

13. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings: Volunteer Hours

14. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings

15. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings: Volunteer Hours

16. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings

17. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings  The volunteers in this study contributed $98,218 in non-reimbursed out-of-pocket expenses

18. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings: Out-of-pocket Expenses

19. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings  The organization created value by providing opportunities for skills development and personal growth  The estimated market value for volunteers’ personal growth and development was $121,791

20. VALUE ADDED BY VOLUNTEERS WORKSHOP Key Findings: Personal Growth and Development Total number of volunteers: 1,506 Percentage of respondents who indicated strongly that they benefited from personal growth and development by volunteering for this organization this year: 53.38% Average cost of community college course for personal growth and development: $151.50 1,506 x 53.38% x $151.50 = $121,791

21. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement Hours contributed$ 939,430 Out-of-pocket expenses 98,218 Amount spent on programs 5,741,634 Total primary outputs$6,779,282 Personal growth & development Total secondary outputs $ 121,791

22. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

23. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

24. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

25. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

26. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

27. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

28. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

29. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

30. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

31. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

32. VALUE ADDED BY VOLUNTEERS WORKSHOP Expanded Value Added Statement

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34. Key Points  The Expanded Value Added Statement takes a broader look at an organization integrates social and financial information takes a stakeholder approach the particular example in this presentation highlights the role of volunteers, but it can be modified to include other social and environmental impacts provides a fuller picture of an organization’s economic and social impact

35. VALUE ADDED BY VOLUNTEERS WORKSHOP To Think About  Are we choosing the right indicators?  What else can be added?  What are the pros and cons of putting a value on volunteer contributions?  How does this help nonprofit organizations?  What about ‘value subtracted’?

36. VALUE ADDED BY VOLUNTEERS WORKSHOP Additional Resources Book What Counts: Social Accounting for Nonprofits and Cooperatives, Prentice Hall, 2003. Website http://home.oise.utoronto.ca/~volunteer

37. VALUE ADDED BY VOLUNTEERS WORKSHOP Thank You! Contact information: Laurie Mook Ontario Institute for Studies in Education of the University of Toronto (OISE/UT) 252 Bloor Street West, 7-167 Toronto, Ontario M5S 1V6 Email LMook@oise.utoronto.ca