Social Accounting Methods

1. Social Accounting Methods Volunteer Value Added Workshop B.J. Richmond Faculty of Education, York University Bjrichmond@edu.yorku.ca April 21, 2004

2. Presentation Outline • Part 1 Developing Social Accounting: Why, how we did it • Part 2 Applying Social Accounting: Why, how you can do it • Part 3 Steps: Getting Ready to Calculate the Value of Volunteers

3. Part 1: Developing Social Accounting • Project Work Experience • Real work for real pay • Pioneering, success • Funding challenges • Computer Training Centre • Help re-entering the workforce • One of a kind, positive results • Funding threat

4. Social Value Taken for Granted • Vast social infrastructure • Nonprofits, co-operatives, mutual organizations as part of a social economy • Alternatives to market, prop up “productive economy” • Lots of attention on accountability • Not so much focus on value • Market economy “rules” • Nonprofits asked to use for-profit methods, to compete; double-standards

5. Nonprofit Value • Contributors to economic, social well-being • ensure quality of life, yet taken for granted • Value unaccounted for • Accounting ignores; no methods, tools • Nonprofits as producers • not just consumers of resources

6. Social Accounting Framework • Used the framework of the social economy • examined the social & economic features of organizations • Integrated financial and social data • developed models • SA used at various levels: • Province wide (Newfoundland); • Organization-wide (What Counts, WCRI); • Volunteers (What Counts, CCP Manual)

7. Estimated a Comparative Market Value for Outputs • Found the closest comparison value for the item – looked first to the private sector market, then to public or nonprofit comparisons • For volunteer contributions, as referred to earlier, the value for the closest approximation of duties performed e.g. meals on wheels driver

8. Inputs Revenues Volunteer Contributions Outputs Expenditures Volunteer Contributions Program Outputs Primary Secondary Tertiary Model: Community Social Return on Investment

9. Inputs Revenues $837,614 Value of Vol 65,853 Total $903,467 Outputs Expenses $842,051 Value of Vol 65,853 Program Outputs: Primary-employmt 599,320 training 113,988 Secondary * ------- Tertiary- income svgs 13,524 serv. svg 2,300 Total $1,637,036 Ratio: 1:1.81 CSROI Case: Computer Training Centre 1994 - 1995

10. Part 2: Applying Social Accounting Models You Can Use Social Accounting To: • More fully represent your organization’s value • Provide key stakeholders (Board, staff, community, volunteers, funders) with a more complete picture of your performance • Examine your use and production of resources from a new perspective

11. Social Accounting: 3 General Steps • Determine inputs, outputs • Verify information by collecting from two or more sources • Assign a comparative economic value for non-market items

12. Where to start: Accounting for Volunteer Value Volunteer Value: • Huge social resource • Little credit given for marshalling it • Few resources provided for managing it • Including volunteer value shows a vastly different picture for many nonprofits • Funders expect some accountability

13. Volunteer Value: Sources of Information • Financial statements • Quantitative data • Sources: tracking, surveys • How many volunteers, how many hours • How many people served in a year • Qualitative data • Sources: interviews, open-ended questions on surveys, focus groups • Market comparisons

14. Part 3 Steps: Getting Ready to Calculate the Value of Volunteers • What is Required: • Infrastructure, Information, Calculations • Choose Level of Reporting: • In Annual Report, or • As a social statement (EVAS) alongside financial statements, or • Include volunteer value in financial statement, for example, CCI

15. Estimating Volunteer Value: Information Needed • Number, type of volunteer activities including Board members – also include Committee time • Costs to the volunteer - out of pocket expenses (survey): • Collect information yearly or every other year • Benefits to the volunteer (survey): • Skills, interpersonal development • Collect this yearly or every other year

16. Calculations Required • Value of volunteer hours • Non-reimbursed out-of-pocket expenses – if available • Dollar value of volunteer skill development – if available • Next, Laurie will show how it the information is put together in an Expanded Value Added Statement (EVAS) …

17. Resources • Quarter, J., Mook, L., and Richmond, B.J. 2002. What Volunteers Contribute. Canadian Centre for Philanthropy. • Quarter, J., Mook, L., and Richmond, B.J. 2003. What Counts. Prentice Hall. • Quarter, J. 1992. Canada’s Social Economy. Lorimer.

18. Resources • http://home.oise.utoronto.ca/~volunteer • Canadian Centre for Philanthropy ‘s Nonprofitscan http://www.nonprofitscan.ca/ and their research reports on volunteers at http://www.nonprofitscan.ca/report.asp?section=recently • United Way of Greater Toronto resource for evaluation, outputs: http://www.uwgt.org/peod/index.html • Newfoundland Strategic Social Plan: http://www.gov.nf.ca/ssp/