Nonprofit News: “The Worst Question to Ask About Charity”

June 22nd, 2009 - Posted by OneStar Foundation - No Comments

In his blog post “The Worst Question to Ask About Charity,”  Dan Pallotta writes about the misconceptions behind measuring a nonprofit’s success through low overhead costs. He argues that judging a nonprofit simply on whether or not it has low administrative costs does not answer the larger, more important question: how much social impact is generated by the work of that organization? The public assumes that there is a direct correlation between low overhead costs and high social impact, says Pallotta, but the two can be mutually exclusive. He doesn’t want people to assume that organizations with miniscule administrative costs must, therefore, be making a difference. In fact, Pallotta states that “major studies on the relationship between organizational strength and impact find otherwise.”

What questions do you think donors and volunteers should ask nonprofit to determine whether or not they are successful? How does your organization measure its success?  Join the discussion at Pallotta’s blog, or share your comments below.

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Governor Proclaims National Volunteer Week

April 20th, 2009 - Posted by OneStar Foundation - No Comments

April 19-25, 2009, is National Volunteer Week. This week is a chance for nonprofit organizations, communities and individuals to thank volunteers for their selfless donation of time and work. Volunteers are the backbone of the nonprofit sector; their skills, knowledge and dedication are a crucial part of nonprofit operations and client services.

This week, OneStar will blog daily about volunteer recognition opportunities and events. We hope that you will utilize the resources mentioned here to recognize some outstanding volunteers in your organization!

Today, we want to thank the Office of the Governor for proclaiming this week to be Volunteer Week in Texas.  “There is perhaps no greater gift we can give than our time,” reads the proclamation. “Whether building homes for low-income families, visiting patients in hospitals or participating in fund-raising events, volunteers across the Lone Star State roll up their sleeves every day to lend a helping hand.  Through word and deed, these ordinary men and women demonstrate the civic commitment central to the success of today’s Texas.”

Read the entire proclamation on our Web site here.

Happy Volunteer Week to one and all!

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The Real Value of Volunteers

April 9th, 2009 - Posted by OneStar Foundation - No Comments

What is a more valuable contribution to a nonprofit: a dollar or an hour?

When asking for donations, it’s common to ask people to give what they can, be it money, time or supplies. A gift in any amount may be appreciated, because not everyone can give a lot. But is your organization giving the gift of time the value it deserves?

Volunteers are more than just unpaid employees, just as nonprofits are more than just companies that do not make a profit. And if volunteers’ professional skills are being put to use, your organization may be getting quite an economic bargain. Tools, such as the Points of Light “Economic Impact of Volunteers Calculator”  or the Independent Sector “Value of Volunteer Time” chart, can help you form a rough estimation of a pro bono volunteer’s time.

Here are some examples currently on the Points of Light Web site:

  • Accountants/actuaries

o    Hourly rate = $27.48
o    Hourly benefit = $11.22
o    Total amount, 1 hour of volunteering = $38.70

  • Computer programmers

o    Hourly rate = $31.96
o    Hourly benefit = $13.05
o    Total amount, 1 hour of volunteering = $45.01

  • Marketing managers

o    Hourly rate = $48.09
o    Hourly benefit = $19.64
o    Total amount, 1 hour of volunteering = $67.73

Disclaimer:  Consult your accounting personnel regarding whether or not these contributions should be reported on your financials statements and if so, at what value.

Obviously, your organization may need help with some tasks that don’t require professional experience. But it’s worth it to ask if you can utilize a volunteer’s knowledge as well as their enthusiasm.

Now, don’t get us wrong—both time and money are valuable donations. It’s not an either-or situation. We want organizations to know not only how many volunteer hours are donated, but also what those hours are worth. With the help of a calculator like the Points of Light one, both kinds of donations can be tallied at the end of the month.

Finally – before asking people to volunteer instead of opening up their wallets, ask yourself how you are going to utilize them as volunteers. The ideal volunteer experience is a positive, engaging one that leverages skills and interests while encouraging ongoing volunteering. Ultimately, it should be as memorable for them as it is helpful for your organization.

So, how can you get ready for volunteers? Watch our blog for a post on this in the near future.

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