Assessing the Value of Volunteer Activity

Abstract

One standard way to convert estimates of time volunteered into estimates of the dollar value of volunteered time is to multiply estimated hours by the average hourly compensation rate for paid labor. Economic theory suggests an alternative valuation strategy that acknowledges the importance of taxes, the provision of volunteer-assisted services at less- than-market prices, and the value of volunteer experiences captured by volunteers themselves. One conclusion is that the standard estimate overstates the value of volunteering to the recipients of volunteer-assisted services but understates the overall value of volunteering when the gains accruing to volunteers themselves are included.