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.

1. The Relative Impact ROI Model
@BetterImpact
This workshop is sponsored by
Creators of Volunteer Impact,
software to help you manage
and track your volunteers

2. The Relative Impact ROI Model
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2012 2013 2014
Volunteer hours 40,000 30,000 20,000

3. The Relative Impact ROI Model
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2012 2013 2014
Volunteer hours
Trees planted
40,000
500,000
30,000
500,000
20,000
500,000
In 2013, fewer vo lunteer
hours were spent
accomplishing the same thing
as other years

4. The Relative Impact ROI Model
@BetterImpact
Actions ≠ Intentions
Actions = Intentions
*
Yo ur missio n
depend s
on it

5. The Relative Impact ROI Model
@BetterImpact
But that’s not
how we’ve
always done it

6. The Relative Impact ROI Model
@BetterImpact
Tim Hortons
coffee
ROI 101 - The Nature of Opportunity Costs

7. The Relative Impact ROI Model
@BetterImpact
ROI 101 - The Nature of Opportunity Costs

8. The Relative Impact ROI Model
@BetterImpact
ROI 101 - The Nature of Opportunity Costs

9. The Relative Impact ROI Model
@BetterImpact
ROI 101 - The Nature of Opportunity Costs

10. The Relative Impact ROI Model
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ROI 101 - The Nature of Opportunity Costs
We should spend our
vo lunteers’ time
as efficiently
as we spend our cash.

11. The Relative Impact ROI Model
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ROI 101 - Time and money are both inputs
Outsource $600
TOTAL COST $600
Engage Volunteer $250
Maintenance & Gas $200
TOTAL COST $450

12. The Relative Impact ROI Model
@BetterImpact
ROI 101 - Time and money are both inputs
If we don’t count
vo lunteer time
as part of the cos t,
we’re saying
it has zero value.
Outsource $600
TOTAL COST $600
Engage Volunteer $250
Maintenance & Gas $200
20 Hours @ $15 / hr $300
TOTAL COST $750

13. The Relative Impact ROI Model
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Process Improvement
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

14. The Relative Impact ROI Model
@BetterImpact
Process Improvement Is there anything yo u co uld do
similar to t his in yo ur organizatio n?
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

15. The Relative Impact ROI Model
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Process Improvement

16. The Relative Impact ROI Model
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Fro m t his ...
... t o t h i s .
A Fundamental Shift in Mindset

17. The Relative Impact ROI Model
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$300
Shopper A
ROI 101 - Outputs Compared to Inputs
$200
Shopper B

18. The Relative Impact ROI Model
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$300
1 Hour
Shopper A
ROI 101 - Outputs Compared to Inputs
$200
5 Hours
Shopper B

19. The Relative Impact ROI Model
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$300
1 Hour
Shopper A
ROI 101 - Outputs Compared to Inputs
$200
5 Hours
Shopper B

20. The Relative Impact ROI Model
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ROI 101 - Outputs Compared to Inputs
Inputs Outputs
If you put $1 in and get $1.02 in return…
…thats is an ROI of 2%.

21. The Relative Impact ROI Model
@BetterImpact
ROI 101 - Outputs Compared to Inputs
Inputs Outputs
If you put $1 in and get $1.10 in return…
…thats is an ROI of 10%.

22. The Relative Impact ROI Model
@BetterImpact
ROI 101 - Outputs Compared to Inputs
Inputs Outputs
If you put $1 in and get $0.75 in return…
…thats is an ROI of - 25%.

23. The Relative Impact ROI Model
@BetterImpact
ROI 101 - Outputs Compared to Inputs
Inputs Outputs

24. The Relative Impact ROI Model
Example Calculations
@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
+$50,000
Total cost
$550,000
Every $1 invested, generated $1.82
That’s an ROI of… 82%

25. 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…
Example Calculations
20,000
300
$1,000,000
$300,000
$1,300,000
$700,000
$1.86
86%

26. The Relative Impact ROI Model
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Inputs Outputs

27. The Relative Impact ROI Model
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Outputs
Drives to appointments ($40)
Cash Expenses
Volunteer time (@ $20/hr)
Total Costs
Every $1 invested, generated
That’s an ROI of…
Example Calculations
1,000 $40,000
$30,000
$40,000
$70,000
$0.57
-43%
Inputs
A negative ROI mig ht be
an ind icatio n t hat t he
prog ram sho u ld be
discontinued.

28. The Relative Impact ROI Model
@BetterImpact
Example Calculations
2012
Appointments serviced 2,100
Average cab fare (both ways) $50
Value of waiting at the appt n/a
Total value of appts serviced $105,000
Volunteer hours cost $85,000
Cash costs $15,000
Total volunteer engagement
$100,000
Every costs
$1 invested, generated… $1.05

29. The Relative Impact ROI Model
@BetterImpact
Example Calculations
2012 2013
Appointments serviced 2,100 1,400
Average cab fare (both ways) $50 $50
Value of waiting at the appt n/a $50
Total value of appts serviced $105,000 $140,000
Volunteer hours cost $85,000 $85,000
Cash costs $15,000 $15,000
Total volunteer engagement
$100,000 $100,000
Every costs
$1 invested, generated… $1.05 1.50

30. The Relative Impact ROI Model
@BetterImpact
Example Calculations
2012 2013
Appointments serviced 2,100 1,400
Average cab fare (both ways) $50 $50
Value 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 $85,000
Cash costs $15,000 $15,000
Total volunteer engagement
$100,000 $100,000
Every costs
$1 invested, generated… $1.05 1.50
$0.70

31. 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
Example Calculations
$10,000
$15,000
$20,000
$25,000
$20,000
$5,000
$1.25
25%

32. The Relative Impact ROI Model
Example Calculations
@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%

33. The Relative Impact ROI Model
@BetterImpact
Fun-run Registrations
Donations via runners
Total Outputs
$ spent on ads, logistics etc
PROFIT
Example Calculations
$10,000
$15,000
$25,000
-$20,000
$5,000
Based on the $5,000 in cash
proceeds and the 800
vo lunteer hours, the value
ad de d fo r e ac h v o lu nte er
hour was ONLY $6.25 per hour.
Committee 10 x 10 x 3hrs @ $50
Event volunteers 100 x5 hrs @$15
TOTAL FREE LABOR
$15,000
$7,500
$22,500
This organisation brag s abo ut
a total of $27,500 in gains
($5,000 in cash procee ds and
+ $22,500 in “f ree labor”).
In reality los t 41 cents for
ever y do llar t hey inve s te d.

34. The Relative Impact ROI Model
@BetterImpact
Thank you to all our donors!
This year we spent 25% more
$$$ than we did last year :)
EnviroOrg
Thank you to all our volunteers!
Thank you to all our volunteers!
This year we had 25% more
This year of hours your we than time used than we had we last did year last year:)
:)
EnviroOrg
www.BetterImpact.com/ROI
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