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The Expanded Value Added Statement. Accounting for the Value Added by Volunteers Laurie Mook OISE/University of Toronto April 21, 2004. Overview of Presentation. Value Added and Expanded Value Added The Expanded Value Added Statement Case Study of Canadian Red Cross, Toronto Region.

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The expanded value added statement

The Expanded Value Added Statement

Accounting for the Value Added by Volunteers

Laurie Mook

OISE/University of Toronto

April 21, 2004


Overview of presentation
Overview of Presentation

  • Value Added and Expanded Value Added

  • The Expanded Value Added Statement

  • Case Study of Canadian Red Cross, Toronto Region


What is value added
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


Income Statement

For the fiscal year

Revenues 100

Expenses (85)

Profit 15

VALUE ADDED BY VOLUNTEERS WORKSHOP


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


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


Calculation of value added
Calculation of Value Added

  • Value of services – Materials/Outside Services Purchased = Value Added

    OR

  • Materials/Outside Services Purchased + Value Added = Value of Services



What is expanded value added
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


The expanded value added statement1
The Expanded Value Added Statement

  • Combines financial and social information to show the value addedcreated by an organization and how that value added is distributed to different stakeholders


Iyv volunteer value added project
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


Key findings
Key Findings

  • 1,506 volunteers contributed an estimated 63,568 hours in the year of the study, or 32.6 full-time equivalents (FTE)






Key findings3
Key Findings

  • The volunteers in this study contributed $98,218 in non-reimbursed out-of-pocket expenses



Key findings4
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


Key findings personal growth and development
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














Key points
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


To think about
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’?


Additional resources

Book

What Counts: Social Accounting for Nonprofits and Cooperatives, Prentice Hall, 2003.

Website

http://home.oise.utoronto.ca/~volunteer

Additional Resources


Thank you
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 [email protected]


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