Budgeting for Volunteer Program

7/30/2019 Budgeting for Volunteer Program

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Budgeting for a Volunteer Program:

Money Well Planned and Well SpentBy Suzanne Lawson

Self-Instruction Guidefor Individuals and Teams


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Budgeting for a Volunteer Program 1

Everyone ReadySelf-Instruction Guide 2010 Energize, Inc.

IDEAL AUDIENCE FOR THIS GUIDE

This Guide is particularly valuable for:

executive directors, CEOs, treasurers (or vice-presidents of finance)

directors of volunteer services (or similar titles), directors of programs/services engagingvolunteers in their work

board members, other key volunteer leaders

Some may already be familiar with budgeting for volunteer programs, but this Guide may alert you tochanges needed in the way the organization considers the requirements related to having a successfulvolunteer program and, indeed, within the annual budgeting process.

LEARNING OBJECTIVES

By reading this Guide and discussing its content, participants will be able to:

List and define the financial costs of volunteer involvement

Make decisions as to how to budget properly for volunteer-related expenses

Describe how covering the costs of volunteer involvement demonstrates significant supportof community engagement in the organization

HOW TO USE THESE SELF-INSTRUCTION GUIDES

The Self-Instruction Guides may look like booklets, but they are really an alternative trainingopportunity.

The trainers who create these Self-Instruction Guides provide you with a participatory way tocombine written information, exercises you can do at your desk, and an online discussionboard. The selected topics allow in-depth focus on an important subject necessary toworking effectively with volunteers. Most of the Guides present details and suggestions notgenerally available in standard volunteer management literature.

Read or complete each section of the Guide in the sequence presented the order of theelements matters to the success of the learning experience. First, you will find preparatoryinformation that sets the topic into context and a pre-reading self-assessment.

Next, youll find the Featured Reading: a several-page chapter, excerpt, or article from arespected source (often, fresh material just published or newly revised) on the chosen topic.

After that, youll find Additional Perspectives, which updates and expands the original

writing and has been developed specifically for Everyone Ready participants. Then you will find Discussion Questions and something we call Try-This Exercises.

Consider forming a study group or learning team so that you benefit from the synergy ofdiscussing the material with others in your program. Sharing your ideas aloud reinforces thelearning and lays the groundwork for actually implementing many of the ideas developed.

Finally, the Trainer provides further resources for ongoing study and you can take the post-reading self-quiz.

The first month that each Guide is introduced, you may ask the trainer questions via thediscussion board linked from your Everyone ReadyMain Page. You can signup to receive


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notification when the trainer responds to your question (as well as others postings) or youcan just check back after 48 hours to see the trainers response. Your exchange will bemade public for all learners to see (you have the option to post anonymously). You have thewhole month to benefit from and further participate in additional discussions.

PRE-READING ASSESSMENT

Answer the following questions to consider how budgeting for volunteer involvement takes place inyour organization or agency and what your role is in that process.

1. Do you have a copy of the current years budget? Yes No

2. Did you have a voice in providing input to this budget? Yes No

3. Are you able to read the budget and understand most of what it says, not justabout the volunteer program, but about allthe priorities for the organization? Yes No

4. Are any of the items below on the budget for volunteer involvement?

Physical space allocation Yes No

Supplies for their specific work (paper, uniforms, nametags etc.) Yes No

Space/equipment to support their presence (chairs, closet, lockers etc.) Yes No

Recognition Yes No

Recruitment costs Yes No

Volunteer management software and Internet access Yes No

Training and education Yes No

Meetings for volunteers(event planning, consultation, volunteer leadership group, etc.) Yes No

5. Does the budget provide for skilled administration of volunteer involvement in the organization?

Through the engagement of one or several professional volunteeradministrators? Yes No

Through area directors or managers with additional skill training andcapacity in volunteer administration/management? Yes No

Through the presence of competent administrative assistance? Yes No

Comments:

6. List 2 noticeable gaps in the budget important to volunteer engagement in your organization.

1.________________________________________________________________________________________

2.________________________________________________________________________________________


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UNDERLYING PRINCIPLES

Volunteers are not free.

Volunteer contribution to an organization, to a program, comes with a cost. The cost can be high or

modest, depending on the situation, but it is a cost.

One of the Guiding Principles for Volunteer Involvement highlighted in the Canadian Code forVolunteer Involvementreads: Volunteers have rights. Voluntary organizations recognize thatvolunteers are a vital human resource and will commit to the appropriate infrastructure tosupport volunteers. Appropriate infrastructure means different things to different people, butwithout it, a volunteer program is undermined and bound to be less effective than it should be.Organizations need to continue to wrestle with what this means for them and how the annual budgetcan support what is needed and desired.

Volunteers are precious commodities for an organization. Consider what would happen if they alldisappeared. There would be less work done, a noticeable absence of a caring human presence forclients, a less attractive program, and so onyou can fill in the blanks. If volunteers are not treated

with respect and care (and that means skilled management and budgetary support!), they will leaveeither in droves or one by one. Replacing volunteers is expensive. So, a budget that pays attention totheir presence and their value will support their continuation and loyalty because they feel valued.

Volunteer administration is a profession and should be compensated as such.

Recruiting, matching volunteers with the right jobs, supporting, coaching, recognizing volunteercontribution, etc. take a leaders time and require the leader to have highly-developed skills in humanrelations and program management (we call this volunteer administration, volunteer management., ormanaging volunteer resources).

Volunteer administration is a profession and not usually done well when it is added as an extra taskfor a staff member or lead volunteer to take on grudgingly. Years of skill development and learning gointo the skills belonging to someone competent enough to lead volunteers effectively. This level of skillrequires the same salary consideration (and thus budgeting) as a director in another department withinthe organization. If coordinating volunteer involvement mustbe a part-time responsibility, I urge you toconsider the specialized skills required and compensate accordingly.

THINGS TO THINK ABOUT AS YOU READ

The Featured Reading, Budgeting and Allocating Resources by Susan J. Ellis, was originally written forsenior leaders such as CEOs and executive directors. If you fit neither of those categories, think abouthow you, from your position, can influence a change to improve the way the organizations budgetsupports volunteers. Also, consider possible funding sources for an increased revenue line in the

budget related to volunteers. Sometimes you may feel powerless to make any major changes, but myexperience would say that a reasoned proposal stating clear benefits from such a change will getserious consideration by your supervisor.

There are many priorities to balance when its budget time. Think about the full value volunteers bringto the organization, whether they are service, program, or governance volunteers. Where do volunteersand volunteer administration fit in the pecking order now? Is that the right place for this resource to beranked? What are the gaps in your current budgeting process related to the volunteers?


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Featured Reading

Budgeting and Allocating Resources by Susan J. Ellis

Excerpt From the Top Down, 3rd edition by Susan J. Ellis, to be released 2010, Energize, Inc.

FEATURED READING

Budgeting and AllocatingResourcesExcerpt from Chapter 3 in From the Top Down: The Executive Role in Successful Volunteer

Involvement, 3

rd

edition by Susan J. Ellis, to be released 2010, Energize, Inc.Let's examine each possible line item in a volunteer involvement budget and discuss the considerationsin arriving at reasonable costs. Special needs in the start-up phase of a program will be indicated ineach category.

Personnel

As you review the expenditures necessary in the personnel category, consider both direct and indirectcosts. [T]he number of full- or part-time staff you designate or hire will depend upon many factors,including the number and types of volunteers, your hours of operation, etc.

Salary Range for a Director of Volunteer InvolvementI am often asked about the appropriate salary range for a director of volunteer involvement. This is an

unproductive question because of the vast variety of settings in which volunteers work. It is nearlyimpossible to compare the operating budgets of an institution such as a museum or hospital with agrassroots agency such as a literacy program or food pantry. Clearly the salary range for any position,including that of the top executive, will differ wildly between such extremely diverse situations.

Determining the salary of your director of volunteer involvement should be based on one criterion only:

What are you presently paying other department heads or key management employees?

The director of volunteer involvement is a managementposition and the only valid measure ofappropriate salary is in comparison with other positions at the same level in your agency. In fact, this isone indicator of how much value you place on the position and, ultimately, on the importance of thecontribution of volunteers. The job requires decision making, leadership, and a great deal of publiccontact on behalf of the organization. If you place the salary on a level with line or clerical staff, youcannot demand management-level credentials or performance from the person you hire to fill the job.You should therefore budget for the position on the basis of its professionalismand hire accordingly!

Other Staff PositionsThe personnel budget category will, of course, include the clerical or administrative assistants and anyadditional volunteer management staff necessary because of the size or schedule of the volunteercorps. For example, volunteers can and often do work many evening and weekend hours, even if theagency is officially open only on weekdays. Who is available to work with volunteers in yourofftime,but theiron time? Do you need a staff member with hours to match those of the volunteers?

Employee benefits are the next line item.

Finally, you might want to estimate the cost of the time devoted by other agency staff to the trainingand supervision of volunteers. While this will not be a direct budget line item, it may help you inidentifying the true cost of the resources you are allocating to support volunteers.

Operational Costs and Other Needed Resources

Several of the following items will not be new expenses but will require a re-allocation of presentorganizational resources.


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Featured Reading



Space and Other FacilitiesVolunteer involvement needs supportive office space that affords the following:

Easy access from the entrance of the building, since prospective volunteers (members of thepublic) will be coming in for interviews and training. Also, proximity to the entrance willallow the director of volunteer involvement to maintain contact with volunteers arriving anddeparting on their scheduled work days and control of the sign in/out system.

Privacy for interviewing prospective volunteers

Secure storage space for volunteers' coats and other personal belongings (and uniforms, ifapplicable)

Group workspace for meetings or other activities

Work stations for volunteers

Volunteers need adequate space in which to work, in whatever location they are placed. Staff mayindeed want assistance with a variety of projects, but has anyone thought through where eachvolunteer will sit, have a clear work surface, have access to office equipment? Also, is there anywhere

that the volunteer can store his or her work materials in-between visits? Is there any provision for amail bin or file folder so that messages may be left for the volunteer? These kinds of details make workgo smoothly and indicate that volunteers are indeed integrated into the organizational environment.

In addition to the space needed on a daily basis, the volunteer office also needs access to:

Space for orientation sessions and in-service training meetings (varying group sizes)

Adequate restroom facilities

Space in various locations for sign-in books or other volunteer communication mechanisms,such as bulletin boards

Possibly, lounge areas for volunteer rest periods. Will volunteers share the same kitchen or

coffee/tea area as employees? Is there enough room for everyone?Access to space and facilities for volunteer use should be uniform with all other units, on a firstcome/first served basis. If employees can bump volunteers from a properly-reserved space for nourgent reason, then volunteers learn they have access to the facilities only when otherwiseunoccupied.

Furniture and EquipmentAssess available workspace and furniture in terms of the impact of more people (volunteers) cominginto the facility at various hours. Too many organizations have discovered too late that they did nothave enough chairs for volunteers who dutifully arrived for work at their scheduled time.

Other needsmost of which are one-time, start-up costs rather than annual expensesare:

Coat racks and locked cabinets for volunteers personal items

Computers, not only for volunteer leadership staff, but also designated for volunteer use(especially if a number of volunteers have been recruited to do clerical workit is usuallynot feasible to expect employees to share their keyboards all the time)

Slide or LCD projector and screen (for recruitment or volunteer orientation slide shows andvideos)

Bulletin boards


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Featured Reading



File cabinets (keep in mind that the volunteer office is the non-salaried personnel office andwill generate paper files in much the same way as the employee personnel office doesdespite computerized records)

Possibly some comfortable furniture for a conversation/interview or lounge area

TelephonesAgain, the number of telephone instruments and lines will depend upon the size and nature ofvolunteer activities. But keep in mind that the volunteer office depends heavily on telephone contacts,both in recruitment/public relations and in ongoing communication with volunteers.

If you are creating any project that involves telephoning by volunteerstelephone reassuranceprograms, market surveying, political canvassing, client follow-upthe cost of telephone calls may be amajor consideration for you. But with traditional telephone services changing all the time, and newadvances in cell phones and Internet calling options, this expense category may be one that actuallydecreases or disappears over time.

SuppliesThis is a budget category that is too often treated as minor, while it is really the tip of an iceberg.

Budgeting for supplies should be done on the basis of the needs of both the volunteer "office" (a smallnumber of paid staff) and the volunteers themselves (many more people). Consumption of supplies willrise as the number of active volunteers increases: productivity comes at the cost of support materials.A possible list of supplies would include:

Paper and stationery

Pencils and pens

Printer and copier toner and paper

Paper clips, erasers, etc.

Paper towels and other maintenance materials

Coffee, tea, and paper cups

In a workshop I ran some years ago for school principals, one participant asked to address hiscolleagues. He proceeded to tell the true story of his experience in the first year of inviting volunteersinto his school. At the March faculty meeting, he admonished his teachers for having wastefullydepleted the school's supply of copier toner. Came the response: "But now, with all the volunteers,we've been able to give the pupils a chance for individual study exercises, so we've been copyingspecial worksheets in larger numbers than ever before." So the principal wanted to advise hiscolleagues: "If you're going to start having volunteers, you'd better increase your toner and copy paperrequisition." What excellent, practical advice!

One way to estimate your costs for supplies might be to translate the cumulative number of hoursserved by volunteers (or anticipated being served) annually into "full-time equivalent" (FTE) staff

positions. For example, if an employee works 2,080 hours a year (40 hours per week x 52), then avolunteer program with 150 people logging 10,000 hours of volunteer service per year can be said togive the organization the equivalent of 4.8 full-time employee hours of service, or 4.8 FTE. If younormally budget supplies using a formula of $xx per employee, to arrive at the supply budget for thevolunteer program, simply take $xx and multiply it times the total of the number of paid staff and theFTE number of volunteer staff.

*

* G. Neil Karn, "The No-Apologies Budget," Voluntary Action Leadership, Spring 1984, pp. 29-31.


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Featured Reading



Just be careful when you use FTE reasoning. There are some items that must be provided for everyvolunteer, no matter how frequently she or he serves. Sometimes 150 volunteers cannot be reduced to4.8 FTE; it really will require 150 x $X to meet the need.

Software for Tracking Volunteer ContributionsToo often, directors of volunteer involvement are forced to make do with software designed primarilyfor other purposes. Time and again colleagues call me in despair at the attitude of managementinformation system or Internet technology staff that volunteer management data is nothing more thana glorified address list that can be added on to some fundraising or accounting software with only afew modifications. The recordkeeping needs of the volunteer office are rather complex, includingmatching people to assignments and coordinating schedules that change each day, dealing withindividuals and groups, and more.

While it is reasonable to want to integrate all the files of your agency into one computer system, therecordkeeping needs of your development office or your casework supervisors are simply not the sameas the needs of the volunteer office. On a daily basis, the director of volunteer involvement handlesfluid data that changes with the current schedules and activities of volunteers. Available off-the-shelfprograms for volunteer recordkeeping are comparatively low cost, especially compared to developing

your own software, and generally better. The money spent on the right software will be an investmentin improved ability to coordinate volunteers.

Internet Access and Web Site SpaceJust as all the other departments in your organization, the volunteer office needs to be online. It is nolonger just useful to be able to access the Web; its a necessity. Online recruitment, communication bye-mail with volunteers, virtual volunteering assignments, professional exchangeall this and more hasbecome everyday business-as-usual. Depending on the size of the volunteer corps, particularly howmany paid and volunteer staff are coordinating activities, it may be important to have several Internet-connected computers available at all times.

This raises other related questions, some of which incur costs, including: Will we create a password-protected, volunteers-only area of our Web site so that information and resources volunteers need in

their work are continuously available to them? Will we establish communication tools to allowvolunteers to interact directly with each other, such as discussion boards or listservs?...

Printing and ReproductionDespite todays electronic communication, documents on paper remain an important line item for avolunteer program. The following items all require printing or photocopying:

Volunteer application forms and other recordkeeping forms

Recruitment brochures, flyers, posters, mailings, and other tools

Recognition certificates, invitations, etc.

Possibly a volunteer newsletter (quarterly?)

Perhaps a volunteer handbook or manual (in the second year?)

Training materials

Printing costs have changed enormously because today everyone can generate just-in-time materialsthanks to word processing and desktop publishing software. Today we can compose and format ourforms, manuals, and other written work and then store each item until we need to print out a certainnumber of copieseven one at a time. But there is still is a good deal of paperwork needed to supportvolunteer engagement.


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Featured Reading



PostageThe amount necessary for postage will depend, of course, on such variables as whether the volunteerprogram postal mails a volunteer newsletter or intends to use mass mailings of any sort to recruitvolunteers. On one hand, postage rates are forever increasing but, on the other hand, electronicpublishing and distribution have decreased dramatically the number of such mailings mostorganizations need to do. Costs for todays communication may therefore mean purchasing orregistering for mass e-mail distribution software and services. However, there are still times whenmailing something to hold in your hand matters.

InsuranceThe whole issue of insurance will be discussed later in this book. Suffice it to say here that the cost ofaccident and/or liability insurance for volunteers may have to be a budget item if your existing agencyinsurance package does not already cover volunteers. Supplemental automobile insurance may also bea need, if some volunteers are utilized as drivers for your organization. Special, one-time eventinsurance may also be necessary if the volunteers run major fundraising extravaganzas for you.

First talk to your present insurance carrier, but be aware that special programs designed specifically forcoverage of volunteer insurance needs are available at reasonable cost.

RecognitionThough it is optional to budget for a major volunteer recognition event such as a party or a dinner,some consideration should be given to how the organization will say thank you formally to volunteers(and perhaps also to the staff who supervise them). Certificates of appreciation are not expensive,while gift items can be budgeted at a wide range of cost. Even a minimal amount of money can permitan enjoyable recognition eventpunch and cookies can show appreciation as well as a steak dinnercan.

Enabling FundsEnabling funds are reimbursement given to volunteers for out-of-pocket expenses incurred in thecourse of volunteer service. This is meant to "enable" people to give their services freely, especially ifthe cost of volunteering would otherwise prohibit some people from participating. The concept of

enabling funds stems from the desire to diversify the corps of volunteers as much as possible. Ifconsideration is not given to out-of-pocket costs, then too many programs will have as volunteers onlythose people who can afford the "luxury" of volunteering. Older people on fixed incomes, students withlittle outside income, and low-income people will otherwise be shut out of the opportunity to give theirtime and energy to causes that they care about.

Some agencies are able to provide in-kind support of volunteers through existing resources, asopposed to having to budget funds to reimburse cash expenditures, including:

Parking lot privileges or van transportation

Meals on site

Free uniforms (or other special items of clothing or uniform cleaning services)

Refreshments, such as hot or cold drinks

Access to an agency-run child care service

When an organization can indeed offer these types of items to volunteers, they might be budgetedunder the heading of "benefits" and certainly should be described as such in recruitment materials.

One criterion may be what you do or do not reimburse or pay for employees. There is no right orwrong answer, but be aware that if you provide free parking for one part of staff, the other part may


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Featured Reading



want it, too. Or if paid staff pay personally for coffee supplies, will they balk if volunteers are not askedto contribute as well?

If you do not have the option of offering such benefits in-kind, consider the types of items that costvolunteers money and therefore might be reimbursedby the organization, such as:

Transportation to and from the assignment

Child care costs

Telephone or copying costs for work done at home

Special clothing needs (uniforms, aprons, work gloves, etc.)

Money spent directly on clients, such as taking a child to a movie or buying supplies for anart class

Some organizations offer reimbursement to volunteers on the basis of economic need. Clearly this is atricky area and requires thoughtful procedures to encourage volunteers to identify their expenses.Philosophically, I believe in making reimbursement available to every volunteer and then allowing those

who prefer to consider the money they spend as a donation to say so.

Volunteer expenses should be budgeted visibly to acknowledge their existence. If some (even most)volunteers select to donate these costs to the agency, this can be shown as "revenue" to offset the"expense" category in your financial reports. For most volunteers, these out-of-pocket costs are a realfinancial consideration and good management requires the recognition and reporting of such agencyresources.

TravelThis line item covers the cost of public outreach and recruitment. The director of volunteerinvolvement and other program representatives will be making speeches and presentations throughoutthe community and such travel or public transportation should be reimbursed.

Travel also should accommodate trips to state and national meetings or conferences for volunteermanagement staff and volunteers.

Professional DevelopmentProfessional development includes funds for the director of volunteer involvement to join variousprofessional societies and registration fees for workshops and conferences, both for the volunteeroffice staff and for key volunteers. This is one way that an organization can build loyalty amongvolunteers: demonstrate interest in their professional development, too. It is perfectly all right to askthat a volunteer make a commitment of time for all funds expended on his/her trainingjust as youwould negotiate with a salaried staff member for a work commitment in return for tuitionreimbursement. If the time commitment is not honored, then the person (employee or volunteer) wouldbe expected to pay back the money extended.

Volunteerism journal subscriptions and book purchases for an in-house library also fall into thecategory of professional development.

Volunteer TrainingTraining expenses may include fees to speakers, video rentals, books and handout materials, etc. tosupport volunteer training programs.


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Expenses to Support the BoardThe budget development process is also a good time to remember that board members and membersof board committees are also volunteers. Where and how do you reflect the costs associated with boardmeetings, travel, and out-of-pocket reimbursements? You may show these amounts as governance orexecutive expenses, but be sure everyone recognizes the correlation between these costs and what isbudgeted for other volunteer roles.

OtherEvery program will have some sort of special need unique to its setting. The point to be made,however, is that volunteer offices often have "odd" requisitions. Who else may ask for 300 balloons?!The creative aspects of recruitment, motivation and recognition require supplies that set a tone oratmosphere different from the rest of the facility. So be prepared for the unexpected!

Decentralize Some Expenses

While we have been discussing the allocation of a budget directly to the volunteer program, under theadministration of the director of volunteer involvement, it is also legitimate to provide for some of theexpenses of volunteers within the budget of each unit that will involve volunteer workers. This allowsfor categorical accounting and may give you a more realistic understanding of the true costs of

volunteer participation.


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Budgets provide opportunity to assess the program and look for improvements.

Look for improvements that will keep volunteers around.

Whether we like it or not, the current trend is for volunteers to do less long-term work in oneorganization. Competition for excellent, loyal volunteers exists. Budget time is an opportunity toassess the shortcomings of your volunteer program and the way the volunteer leaders are treatedcompared to other similar organizations. Im not referring to giving a better or more expensivevolunteer reception or Volunteer Week dinner each year. Rather, what elements are in place to keepvolunteers committed and contributing their skills and time? Are there opportunities provided for theirgrowth as individuals? Do they have access to the equipment needed, or are they continually frustratedabout the line-up for computer time or the waiting period for a response from the one over-workedvolunteer administrator? Is there a good newsletter that keeps everyone linked together? Are theirexpenses reimbursed?

Do take the time, then, before submitting budget figures to check out the competition, and developproposals with costs to ensure that your organization is not falling miserably behind other volunteerprograms.

Be sensitive to the balance between paid staff and volunteers.When developing the budget, pay attention to the fine line between what is allocated for paid staff andwhat is allocated for volunteers. If theres a major imbalance either way, morale can be affected. Oncemorale starts to fall, its very hard to bring back up to a standard of excellence. For instance, if there isa top-notch leadership development program made available to volunteers but there is no access forstaff to participate nor an equivalent leadership development program for staff, staff will soon becomeresentful. Or, if staff have a comfortable lounge, but volunteers have no place to make a cup of coffee,volunteers will quickly figure out how valued they are. Remember that equality is not what is expectedor required, simply some equity, some attention to the needs of both groups who make up theorganization.

And, by the way, there can be similar volunteer dissatisfaction if one committee gets to meet at a fancyhotel, and all others meet in a run-down conference centre to save money. (Its almost always thefinance committee that gets the hotel, have you noticed?!) Watch for inequity here, too.

Consider economic differences when developing budgets for national or largeorganizations.

For national/nation-wide or large regional (state- or province-wide) organizations, there is a need todevelop a budget based on differing economic conditions, especially with regard to salaries andbenefits for the volunteer administration and support staff. The expectations for a reasonable salary inToronto or New York are probably quite different from those in Saskatoon or Des Moines. Goodassessment of local conditions is necessary, and assumptions without such research shouldnot be made.

As a budgetary strategy, be careful not to articulate the salary line with detail that will pinpoint who isgetting what salary. The detail is reserved for the CEO or executive director. What counts is that therehas been careful assessment of both competitive wage scales wherever the people are located, andattention to merit and experience. The caution about revealing detail in a budget comes from bitterexperience. If someone from North Dakota sees a salary for a staff person in Massachusetts, theyll goballistic! They may well not know the going rates in the east, but they sure know thats more money byfar than they will ever make and that makes them angryand their work demeaned. So, budget withthe utmost transparency for a salary basket (all the salaries together) or at least a large departmenttogether, not one by one.


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Decide where allocating volunteer budgetary items works best.

There are two ways to budget for volunteer involvement across the organization. One is to gather allthe volunteer-related costs into one budget area called volunteer program. The other is to ensure thatcosts are spread over the variety of departments where volunteers are utilized and active, reserving asmall budget only for the coordinating role of a central office and volunteer administrator. There are

values to each.

In the first option, all costs that are associated with volunteers are gathered because there is then anindication of what the overall program really costs the organization. There is no sense that this is aperipheral, easy to ignore, program. It has significance because some people only value moneyassigned rather than the work done. It does, however, make the program an easy target at a time ofbudget cuts.

When the costs are spread to where the work is done, the transparency is of a differentsortvolunteers are engaged throughout the operation, and theres at least one line item in eachactivity area to prove it! This is officially called allocating, but I like the phrase I learned from a seniorvolunteer leader once: peanut-buttering spreading the costs over several areas where they logicallybelong. In a local Cancer Society, for instance, that would mean budgeting for recruitment, supplies,

recognition, staffing, etc. in the departments of education, service, and fundraising as well asgovernance. The budget cut threat is less, but there is a possibility of the volunteer effort seeming tobe invisible as an overall priority of the organization.

Budget cuts: manage the reality.

Be careful not to jump to easy answers.

Many of us have had to go through budget reductions and downsizing. There are particular dangers forvolunteer programs within a large organization when a major budget cut looms. One easy answer tois to lay off staff and replace them with volunteers. This answer is fraught with difficulties for thefuture. Besides the fact that it takes money to recruit, train, and supervise new volunteers (and it maybe far too simplistic to think they can be found and deployed to fill staff vacancies), any hint of an

attempt to replace staff with volunteers immediately feeds staff suspicion of volunteers, and thatsuspicion will not go away for years! Staff will not want to encourage skill development in volunteers,will not want competent people in their department as volunteers, because of the threat of their takingover. (This is much different from volunteers being put in place at the request of staff or with the helpof staff to take on a particular aspect of work that the staff had previously been doing.)

Accept reality and strategize.

Budget cuts can translate into less investment in a volunteer program. There can be special pleading(not whining!) that volunteers are needed now more than ever. But, sometimes the cuts must happenanyway, and its only fair that the volunteer program share the impact with the rest of the organization.Strategize to see where cuts can diminish contribution least and where savings can be made withoutpermanent damage. If there are large cuts, dont buy into the now-old saying that we can do more

with less. In fact, say right out that we will do lesswith less, but well do the best we can. Put a bravebut real face on what is a considerable blow to the contributions volunteers can make.

Find ways for volunteers to contribute to the bottom line.

There are two sides to every budget: revenue and expenses. Are there ways that volunteers cancontribute to the revenue line as well? Certainly, there are ways to indicate a wage replacement valuefor the hours of work volunteers do. (Caution: expressing volunteer contributions monetarily does notbegin to describe what volunteers contribute in compassion, caring, skill and so on.) However, mightvolunteers find a way to hold special events as a group to benefit the revenue for the organizational


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mission? Special events are almost always made possible by armies of volunteers working with or oftenwithout much staff support. Could those special events be highlighted in a budget as Volunteer-organized Special Events to bring the point home? Do you have a system for recording the out-of-pocket expenses (commonly not submitted for reimbursement) and in-kind donations of volunteers?The cumulative total of these often invisible cash contributions may open some eyes. Is there a specialannual campaign for funds focused on requesting donations or planned gifts from the volunteers?

(Many of them give money generously already, but is that money recorded as coming from volunteersor are the donations dumped into the public annual campaign without connecting the dots to howclosely connecting volunteering and giving money really are?) These ideas, as well as how to raisefunds specifically for supporting volunteer involvement, are explored further in the Everyone ReadySelf-Instruction Guide, Learn to Do More with More: Fearless Fundraising for Volunteer ProgramSupportby Betty Stallings.

Tell the true story of volunteer engagement.

Whether you try to delight treasurers by including volunteer revenue to the bottom line, include anarrative budget, or calculate the realistic expenses of the volunteer program, spending that time andeffort to including all aspects of volunteer contribution on the annual budget will tell a truer story ofvolunteer engagement.

STUDY QUESTIONS FOR INDIVIDUAL OR TEAM USE

How do the current budget format and the budget amounts reflect our commitment tovolunteers? How could we take small steps towards improvement?

Has there been resistance in the past to expending funds on volunteers? What might besome ways to make the case effectively for an appropriate budget?

The Canadian Code of Volunteer Involvement(http://www.volunteer.ca/volunteer/pdf/CodeEngJune2006.pdf) provides an organization

(in Canada or elsewhere) with an excellent set of standards related to their engagement ofvolunteers. Assess your organizations alignment with Standards 2, 3, 4, 8, 9, 10, and 11 asit is reflected in your budget.

TRY-THIS EXERCISES

Hold a brainstorming session with five to ten volunteers in your organization to develop alist of ways that volunteers could (or already do) contribute to the revenue line of theorganizational budget. Take the exercise even further and create a plan to implement oneof the ideas.

Select one section of your budget (e.g., furniture and equipment) and create a narrativebudget explaining the story behind how volunteers contributed to these specificexpenses/revenues. Can you see how a narrative can be used to communicate the impact ofvolunteer involvement? Can you envision which other areas of the budget would work well innarrative form?

Have a discussion with the treasurer or director of finance about how the budget ascurrently presented reflects volunteer involvement, and how it could better reflect theimportance of volunteers to the organization. (Share your learnings from this Self-Instruction Guide with her/him first.)


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RESOURCES ON THIS SUBJECT

The best resources for you in developing better budgets for volunteer programs exist in your ownorganization, and in your close colleagues in other organizations. Asking the chief financial officer togive you an hour of her/his time to explain the components of the current budget related to volunteers

will not be a request unheeded. Financial wizards love to explain to others the passion they have forfigures and for the way figures speak to the priorities of the organization. They will also be glad to helpfirst-time budget-makers create the best budget proposals possible.

A lunch with colleagues from other organizations about the features of their organizational budgets asrelated to volunteer involvement is well worth trying too. This might just develop into a regular supportgroup for each other (but thats another topic!). You dont need to know specific dollar amounts, butdiscover how they have figured out future expenses/revenues, and how they have presented theirproposals. Youll also want to know what reasoning they have used to increase budget attention to therequirements of volunteers in their organizations.

Ellis, Susan J. From the Top Down: The Executive Role in Successful Volunteer Involvement. 3rd Edition,To be released March 2010, Energize, Inc.

Karn, G. Neil, "The No-Apologies Budget," Voluntary Action Leadership, Spring 1984.

Cowling, Martin and Andy Fryar. Sabotage Part Three: Messing It Up: How Not-for-Profits SabotageTheir Volunteer Programs (With 10 Important Antidotes). e-Volunteerism: The Electronic Journal ofthe Volunteer Community. Vol. VIII, Issue 2, Jan.15-Apr. 14, 2008. (Access this article through yourEveryone Ready Main Page.)

McCurley, Steve. Valuing Volunteer Time. e-Volunteerism: The Electronic Journal of the VolunteerCommunity. Vol. I, Issue 2, Winter 2001. (Access this article through your Everyone Ready MainPage.)

Wiggins, Susanne Brunhart. "Think Before You Leap: Buy Success with Your Budget." e-Volunteerism:The Electronic Journal of the Volunteer Community. Vol. III, Issue 3, April-June 2003. (Access thisarticle through yourEveryone Ready Main Page.)

The Canadian Code for Volunteer InvolvementThe Canadian Code for Volunteer Involvement is designed to present a setting in whichorganizations can discuss how their volunteers are engaged and supported.http://www.volunteer.ca/volunteer/pdf/CodeEngJune2006.pdf


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POST READING SELF-ASSESSMENT

1. Explain one way you plan to have a voice in providing input about the volunteer program tonext years budget?

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2. Are there areas in the current budget that you still have trouble understanding? List two peoplewhom you could ask to clarify those areas for you:

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3. List two practical plans to address the noticeable gaps in the budget as they relate to thevolunteer involvement in your organization?

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ASK THE TRAINER

Now that youve read this Guide, you can interact with the trainer! Ask questions to get advice forapplying the information to your own setting.

Ask whatever is on your mind by posting a question on the discussion board, and the trainer willrespond via the board within 48 hours. (You will be given the option to keep the exchange

anonymous). You can also exchange comments, ask questions of other participants, and sign up toreceive e-mail notifications of new postings to the board.

TELL US HOW YOU LIKED THIS GUIDE

We would love to hear your thoughts about the quality of this Self-Instruction Guide. Your feedback willhelp us to improve our training materials for you in the future. Please take a moment to complete the

online evaluation; this link can also be found on your Main Page during the time this Guide is thefeatured topic.

Privacy Statement: We promise never to use this information or your e-mail address for any otherpurpose besides learning how to improve our Guides. Energize, Inc. does not sell, rent, loan, trade,lease or otherwise disclose any personal information collected.

Discussion Board with Suzanne Lawson whenthis Guide is the Featured Topic

Access the board via yourEveryone ReadyMain Page.


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ABOUT THE TRAINER

Suzanne Lawson

Suzanne Lawson is a seasoned professional consultant in the Canadian andinternational voluntary sector. She previously held a variety of positions inthe Heart and Stroke Foundation of Ontario, was executive director ofOntarios Arthritis Society, executive director of Program for The AnglicanChurch of Canada, executive director for the ALS Society of Canada (ALS isalso known as Lou Gehrigs disease), and director of volunteer resources forTorontos Sick Childrens Hospital. She took an active role in the leadershipof the Canadian Governments Voluntary Sector Initiative.

A long-time member of the Association for Volunteer Administration andamong the first Canadians to receive their professional certification, Suzannewas presented with the Harriet Naylor Distinguished Member Service Awardin 2002, and was also a recipient of the Queens Golden Jubilee Medal for her

contribution to Canadas voluntary health sector. She was a founding board member of the Council forCertification in Volunteer Administration.

She is proud of having carried the profession of volunteer administration very explicitly forward in herpositions as a senior executive, and has always seen the main challenge of executive directors beingthe management of all volunteersservice-oriented, program development, and board. Whilecontinuing as an active volunteer in both church and secular organizations, she is now leading aconsulting practice (Suzanne Lawson and Associates) which focuses on helping leaders lead andorganizations excel.

Suzanne contributed to e-Volunteerism: The Electronic Journal of the Volunteer Communityin July of2006 by authoring the feature article Working with Senior Leadership. (Participants of the EveryoneReady program can access e-Volunteerism from their organizations or individual membershipsEveryone Ready Main Page.). Also, she previously served as a trainer for the Everyone Readyprogram, writing a Guide and facilitating discussions about First Days Count: Orienting and WelcomingVolunteers for Success.

Suzanne has been involved in budgeting for both service volunteer programs in a single location andthe organization-wide involvement of volunteers. While she brings wisdom and experience to thisGuide, she is the first to admit that creating a budget is a challenging task. She is pleased to have thisopportunity to learn as well as inform at the same time!


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Everyone Ready is a staff development training plan produced by Energize, Inc. to sharpenvolunteer management skills. The plan includes online training materials provided throughout the yearon basic and advanced volunteer management subjects. There are individual and organizationalmemberships, the latter designed to allow organizations to share the content with volunteer and paidstaff at every level and geographic location across their networks.

Self-Instruction Guide Energize, Inc., 2010

5450 Wissahickon AvenuePhiladelphia, PA 19144www.energizeinc.com

Featured ReadingExcerpt from Chapter 3 ofFrom the Top Down: The Executive Role in Volunteer ProgramSuccess, Third Edition by Susan J. Ellis, to be released 2010, Energize, Inc.

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Documents

Budgeting for Volunteer Program