relative impact: volunteer roi part 1 – more volunteer hours is not always a good thing
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The Relative Impact ROI Model@BetterImpact
This workshop is sponsored by
Creators of Volunteer Impact, software to help you manage and track your volunteers
The Relative Impact ROI Model@BetterImpact
2012 2013 2014
Volunteer hours 40,000 30,000 20,000
The Relative Impact ROI Model@BetterImpact
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
The Relative Impact ROI Model@BetterImpact
Actions ≠ Intentions
Actions = Intentions
*
Your mission
depends
on it
The Relative Impact ROI Model@BetterImpact
But that’s not how we’ve
always done it
The Relative Impact ROI Model@BetterImpact
Tim Hortons coffee
ROI 101 - The Nature of Opportunity Costs
The Relative Impact ROI Model@BetterImpact
ROI 101 - The Nature of Opportunity Costs
The Relative Impact ROI Model@BetterImpact
ROI 101 - The Nature of Opportunity Costs
The Relative Impact ROI Model@BetterImpact
ROI 101 - The Nature of Opportunity Costs
The Relative Impact ROI Model@BetterImpact
We should spend our
volunteers’ time
as efficiently
as we spend our ca
sh.
ROI 101 - The Nature of Opportunity Costs
The Relative Impact ROI Model@BetterImpact
Outsource $600
TOTAL COST $600
Engage Volunteer $250 Maintenance & Gas $200
TOTAL COST $450
ROI 101 - Time and money are both inputs
The Relative Impact ROI Model@BetterImpact
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
The Relative Impact ROI Model@BetterImpact
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
The Relative Impact ROI Model@BetterImpact
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?
The Relative Impact ROI Model@BetterImpact
Process Improvement
The Relative Impact ROI Model@BetterImpact
From this ...
... to this.
A Fundamental Shift in Mindset
The Relative Impact ROI Model@BetterImpact
$300
Shopper A
$200
Shopper B
ROI 101 - Outputs Compared to Inputs
The Relative Impact ROI Model@BetterImpact
$300
1 Hour Shopper A
$200
5 Hours Shopper B
ROI 101 - Outputs Compared to Inputs
The Relative Impact ROI Model@BetterImpact
$300
1 Hour Shopper A
$200
5 Hours Shopper B
ROI 101 - Outputs Compared to Inputs
The Relative Impact ROI Model@BetterImpact
Inputs Outputs
If you put $1 in and get $1.02 in return…
…thats is an ROI of 2%.
ROI 101 - Outputs Compared to Inputs
The Relative Impact ROI Model@BetterImpact
Inputs Outputs
If you put $1 in and get $1.10 in return…
…thats is an ROI of 10%.
ROI 101 - Outputs Compared to Inputs
The Relative Impact ROI Model@BetterImpact
Inputs Outputs
If you put $1 in and get $0.75 in return…
…thats is an ROI of 25%.-
ROI 101 - Outputs Compared to Inputs
The Relative Impact ROI Model@BetterImpact
Inputs Outputs
ROI 101 - Outputs Compared to Inputs
The Relative Impact ROI Model@BetterImpact
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
The Relative Impact ROI Model@BetterImpact
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%
Example Calculations
The Relative Impact ROI Model@BetterImpact
Inputs Outputs
The Relative Impact ROI Model@BetterImpact
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.
Example Calculations
The Relative Impact ROI Model@BetterImpact
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
Example Calculations
The Relative Impact ROI Model@BetterImpact
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
Example Calculations
The Relative Impact ROI Model@BetterImpact
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
Example Calculations
The Relative Impact ROI Model@BetterImpact
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%
Example Calculations
The Relative Impact ROI Model@BetterImpact
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%
Example Calculations
The Relative Impact ROI Model@BetterImpact
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
Example Calculations
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.
The Relative Impact ROI Model@BetterImpact
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
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