Australian Population & Migration Research Centre
Policy Brief
Vol. 1, No. 11
November, 2013
THE REAL VALUE OF VOLUNTEERING
By Lisel O'Dwyer
Background
Several ways to estimate the value of volunteer
work have been developed. The most commonly
used method in Australia is the market value of
volunteers’ time, based on average weekly
earnings. It relies on data collected by the
Australian Bureau of Statistics in the
volunteering component of the General Social
Survey for formal volunteering (i.e. volunteering
through a formal organization). Data on the time
spent on informal forms of volunteering (any
other type of volunteering, such as helping out a
neighbour) is available from Time Use Surveys
(ABS 1992, 1997, 2006).
From a strategic perspective, we have to attach
monetary measures to the value of volunteering.
Therefore, we need to develop ways to account
for the impact of volunteering everywhere it is
felt. For example, the social and economic values
flowing from even modest increases in social
capital (of which volunteering is a significant
component) are likely to be quite large. Previous
research has estimated for example that a 1 unit
increase in organisation memberships per capita
would have resulted in 1671 fewer deaths in
South Australia in 2001 than actually occurred;
and that reductions in sexual assault might save
a relatively modest $20,000, while savings in
vehicle theft and theft from vehicles might be
$76,000 and $42,000 respectively.
Research Findings
Data limitations mean that an up-to-date
estimate on the value of all volunteering for
Australia must be based on conservative
assumptions and past trends. On this basis, if
we use the standard method of valuing
volunteers’ time, we assume that:
 the number of average annual hours
spent in formal volunteering in 2010 is the
same as for 2006 (the lowest rate on
record);
 the ratio of time spent on formal and
informal volunteering is 30:70 (based on
the average ratio for 1992, 1997 and 2006
which has hardly changed over time);
 the time spent travelling is 18% of the
time spent on all volunteering (based on
the lowest share for travel over 1992, 1997
and 2006)
 other inputs account for an extra 12.7%
of the value of time inputs;
 the average wage rate in 2010 was
$27.45 per hour
 then the value of volunteering in
Australia in 2010 was approximately $100
billion.
 This represents about 8 per cent of
GDP in 2010.
If we use less conservative assumptions, based
on extrapolating trends in the above
parameters since 1992, (rather than minimum
annual average change), the value of
volunteering would be well over $120 billion.
Other bases for comparison include national
government expenditure in 2010 on:
 Health : $21 billion;
 Education : $8.5 billion
 Recreation and culture: $2 billion
 Defence : $19.4 billion
Consumption in all sectors in 2010:
 $91 billion (ABS Cat No. 5204 Table 35).
Then there is the value of other industry
sectors’ annual production in 2010:
 Mining: $98 billion
 Agriculture: $29 billion
 Retail: $58 billion (ABS Cat No. 5206
Table 6).
The trend over time in the value of
volunteering, both in constant dollars
(accounting for inflation) and in actual or
current dollars is shown in Figure 1.
Table 1. Total value of volunteering, Australia,
2006 and 2010 ($millions)
Source: ABS Time Use Surveys 1997 and 2006 and
Voluntary Work Survey 2006 and 2011
20061
20102
$17,179
$33,648
$8,973
$59,800
$22,547
$52,609
$13,528
$111,230
A. Volunteer time inputs
Organised
Unorganised
Travel
Total value of time
B. Other volunteer inputs (car, phone etc.)
Organised
Unorganised
Travel
Total value of other
inputs
$2,182
$4,273
$1,140
$2,863
$6,681
$1,718
$7,595
$11,263
$19,361
$37,921
$10,113
$25,410
$59,290
$15,246
$67,395
$99,946
C. Total volunteer inputs
Organised
Unorganised
Travel
Total value of
volunteering
Notes: 1. Based on complete data
2. Based on assumptions for number of hours
Figure 1. Estimated values for all volunteering, Australia, 1992-2010
110
100
Current dollars
Billions of dollars
90
80
Constant dollars (base year = 2010)
70
60
50
40
30
20
Year
Source: 1992 and 1997 estimates from Table 5.5 , Ironmonger (2000: 70). 2006 and 2010 estimates based on the 2006 and 2010 ABS
Survey of Volunteering Cat No. 4441.0 and 1997 and 2006 Time Use Survey Cat No. 4513.0. Dollar conversions based on All Groups
CPI for Australia Cat No. 6401.0.
In real terms the value of volunteering has
more than doubled since 1992, with an average
annual increase of about 7 per cent per year.
The ensuing retirement of the first wave of
babyboomers is likely to increase the time and
number of people involved in volunteering and
so we are likely to see this trend continue,
perhaps at an even more rapid rate.
But the value of volunteering is attached to a
multiplicity of outcomes, not just volunteers’
time, as conceptualised in Figure 4.
One hour of a volunteer’s time needs to be
valued not just once but up to 9 times – and at
different rates.
A very conservative estimate using an hourly
value of only 25 per cent of the average hourly
wage ($6.86), assuming that only 4 of the
possible 9 other entities benefit from a single
volunteer’s time and that they benefit to an
equal extent, produces a value of around $200
billion, double the value of just volunteers’
time of $100 billion. The true value may well be
much higher still.
In this light, the estimates we currently have of
the economic value of volunteering represent a
small fraction of the true value of volunteering.
Figure 2. A multidimensional model of the real
value of volunteering.
Source: Graff 2009 p. 5: http://www.lindagraff.ca/musings.html
Implications
The real value of volunteering goes way
beyond X dollars per hour of a volunteer’s
time because volunteering has more
beneficiaries than just government and the
economy,
including
the
volunteers
themselves.
Volunteering is clearly valuable and it is
politically (and even morally) necessary to
quantify its worth. Using monetary measures
is understandable in the light of our familiarity
with notions of economic worth and how to
value workers’ time. However, current
estimates of volunteering’s economic value
are likely to be gross under-representations.
On the other hand, a focus on monetary value
may even be damaging if it reinforces the
notion that volunteering is all about saving
money.
We need to develop a new model of valuing
volunteering which accounts for all the
benefits of volunteering. Other issues
associated with the characteristics of the age
groups involved in volunteering, particularly
the babyboomers and older people, such as
productivity and particular skills, will also be
important in developing a new model of
valuing volunteering.
Policy Recommendations
 Volunteering makes a large economic contribution (via volunteers’ personal
expenditure and savings to government) but also has positive social and personal
benefits. It must be encouraged and supported through:
o making it easier for people to become volunteers (eg reducing red tape for
police checks).
o making it easier for organisations to recruit and manage volunteers by
including policies on OHS and bullying for volunteers as well as paid workers,
and subsidising training for volunteers
o ensuring that volunteers do not replace paid workers as a cost saving measure
 Governments at all levels should continue to recognise and appreciate volunteers’
efforts (this is already done through several channels but an expansion of these may
be warranted).
Edited by Arusyak Sevoyan
Australian Population and
Migration Research Centre
http://www.adelaide.edu.au/apmrc/
School of Social Sciences
Room G17, Ground Floor, Napier Building
The University of Adelaide
South Australia 5005
Telephone +61 8 8313 3900;
Fax: +61 8 8313 3498