relative impact: volunteer roi part 1 – more volunteer hours is not always a good thing
DESCRIPTION
There is a disconnect in the volunteer sector between our intentions to truly value our volunteers’ time and our actions that actually de-value it. If the focus of the reports you are asked to produce is on the number of volunteer hours at your organization, and particularly if you are considered to be doing your job well if those numbers keep going up, this disconnect might be alive and well in your organization. While it is strongly encouraged and extremely beneficial to attend both Part I and Part II of this series, attending both is not required.TRANSCRIPT
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
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