Understanding the financial value of volunteer time is crucial for nonprofits aiming to showcase their impact, enhance fundraising efforts, and allocate resources effectively.
This is something we’ve learned firsthand developing volunteer management software at Civic Champs, after working with hundreds of organizations and tracking millions of hours across volunteer programs. When we talk to program managers and executive directors, we often hear that they want to highlight the value that their volunteers bring to the organization. One way the best volunteer management software for nonprofits can do that is to show the financial impact volunteers have.
Why? For many reasons: To thank volunteers. To accomplish mandatory reporting for things like grant matching. To communicate community impact to the communities we serve.
But calculating the value of volunteer hours is not something you have to guess at. Between government guidance and some good industry best practices, there’s plenty to pull from as you work to qualify the impact of your volunteers.
Let’s break that down together.
How Do You Measure Volunteer Hours?
Accurate tracking of volunteer hours is the foundation for calculating their value.
Traditionally, that’s looked like:
- Manual logs: Volunteers jotting down time on a clipboard at the door.
- Sign-in sheets: Paper forms that sometimes get misplaced or misread.
- Spreadsheets: Often managed by one staff member who becomes the sole keeper of the data.
These systems may work when you’re small, but they can become fragile fast. I’ve talked to leaders who spent entire weekends chasing hours for a board report because of inconsistent tracking or reporting.
That’s why digital solutions make such a difference. Mobile apps and volunteer management software help automate time tracking, cut down on errors, and generate accurate volunteer hours reports, which are increasingly expected by funders and stakeholders alike. Just like many of us today wear smartwatches to track our steps, many volunteers will love to see their own history of volunteering over time.
The real win? When you don’t have to think about tracking at all. Volunteers check in, the app logs it, and you can pull a clean report in seconds. That’s how it should be.
Why Do Nonprofits Need to Calculate the Value of Volunteer Hours?
Just as a “for example,” in 2022–23, U.S. volunteers donated approximately 4.99 billion hours of service (worth an estimated $167.2 billion in economic value) according to the most recent data from the U.S. Census Bureau. That level of value is massive, and it needs to be properly captured for any of us to truly know the level of impact we are having. Assigning a monetary value to volunteer time serves multiple purposes:
- Fundraising and grant applications: Most grantors want to know what in-kind support you’re leveraging. Volunteer hours show community buy-in.
- Impact reporting: For boards, donors, or community partners, this is a concrete way to say: Here’s how many hours we gave and what that time was worth.
- Resource allocation: You can start to see which programs rely most on volunteers and where you may need to invest in recruitment or support.
- Volunteer recognition: When a volunteer sees their contribution translated into thousands of dollars of value, it lands differently. It’s a signal: Your time matters here.
It’s worth noting that while the IRS value of volunteer hours isn’t deductible for individuals, it’s still a legitimate, widely recognized tool for internal and external reporting. And using it sends a message that your nonprofit is operating with the kind of transparency and professionalism that funders and community partners respect.
How Much Is a Volunteer Hour Worth?
The value of a volunteer hour varies by state and is updated annually.
As of 2024, the federal volunteer rate is $34.79 per hour, according to Independent Sector (source). That rate is based on average private-sector wages, adjusted for fringe benefits.
We’ve seen some wide variance by state:
- California: $40.14
- Indiana: $31.05
- District of Columbia: $52.06
It’s important to understand: this isn’t a wage, it’s a replacement value estimate. In other words, what would it cost your organization to hire someone to do that same work?
It’s important to understand that this isn’t a wage; it’s a replacement value estimate. This figure represents what it would cost an organization to hire paid staff to perform the same tasks that volunteers are doing at no cost. The estimate usually includes the average hourly wage for comparable work, such as administrative support, customer service, event staffing, or skilled roles like IT or logistics, based on national labor statistics. It reflects the true economic contribution of volunteer hours and helps nonprofits, funders, and policymakers understand just how much unpaid labor supports essential programs and services. While it does not include benefits or overhead, it still offers a powerful perspective on the scale of value that volunteers provide.
And if you’re tracking skilled roles, like a licensed electrician, a nurse, or a bilingual mentor, there’s often an argument for using job-specific benchmarks to better reflect the true value.
From our conversations with nonprofits, we’ve found that many organizations underestimate how much they’re benefiting from volunteer labor. Once they do the math, it often surprises them just how much impact they’re getting.
How to Calculate Volunteer Hours Value
Here’s the basic process:
- Track volunteer hours – Ideally, using a digital system that reduces manual entry and catches inconsistencies.
- Choose your valuation rate – This can be the national figure, your state’s rate, or a task-specific benchmark if applicable.
- Do the math – Multiply total hours by your selected rate.
Let’s say your volunteers put in 500 hours in 2024, and you’re using the national average:
500 × $34.79 = $17,395
That’s over seventeen thousand dollars of in-kind value, a number that can help you make the case for funding, validate your staff’s efforts, and celebrate your volunteers with real data.
And I’d encourage you to think beyond the numbers. When you start seeing hours translate into value, it also opens up strategic conversations. What’s your ROI on volunteer training? How much does retention matter? Should you be investing more in volunteer coordination staff?
Spoiler: probably yes.
Tools for Accurate Volunteer Tracking
This is where tools make all the difference.
It’s one thing to understand the formula. It’s another to track hours accurately, cleanly, and in a way your team can actually maintain. That’s why we built Civic Champs the way we did: mobile-first, fast to onboard, and easy to adopt.
Some highlights:
- Mobile app (available on iOS and Android) – Volunteers can check in or log hours wherever they are.
- Kiosk (can be launched on any screen or device)- Volunteers can use a tablet or laptop to check-in like they do at a gym or studio.
- Automation – Features like geofencing and auto check-outs reduce the burden on staff.
- Centralized reporting – You can pull a full exportable report, filtered by program, event, or timeframe, with just a few clicks.
If you're looking for a volunteer time tracking app for Android, as well as iOS, we’ve worked hard to make Civic Champs feel intuitive from the first tap. Because adoption isn’t just about functionality; it’s about respect for your team’s time.
Want to simplify your reporting and showcase your volunteers’ true value? Use Volunteer Management Software to easily log hours and create impactful reports. Not sure where to start? Our Best volunteer management software for nonprofits guide will help you find the right tool to track, calculate, and communicate volunteer impact.
Click here for a demo of Civic Champs today.
As CEO of Civic Champs, I lead our team of passionate change leaders to create technology solutions to create a seamless and rewarding volunteering experience for both volunteers and service organizations.