Reference no: EM132390265

Because the non-profit sector relies heavily on volunteers to undertake its activities, the value of volunteer work is based on the replacement cost approach. That is, it represents how much it would cost to replace volunteer effort if the same services were purchased on the paid labour market.

The replacement cost value of work was approximately $14.0 billion, compared to $55.9 billion for paid labour. Put another way, volunteering continues to represent a considerably larger resource to the non-profit sector than monetary and in-kind donations from households. The replacement cost value of volunteering was estimated at $14.0 billion, which was more than double the $6.6 billion of donations received from households.

The use of volunteers relative to paid labour varies considerably by type of organization. The majority of volunteer work is concentrated in three fields of activity: culture and recreation, social services, and religion, with these three groups accounting for nearly three-quarters of the total in the core segment. Large service providers in health and education rely more heavily on paid labour, as do business and professional associations.

The value of volunteer work declined between 1997 and 2000, due to a drop in hours volunteered. While a million fewer Canadians offered volunteer services, those who did invested more hours on average, partially mitigating this decline. Non-profit and voluntary organizations appear to be experiencing difficulties fulfilling their missions or achieving their organizational objectives. Just over one-half report having problems planning for the future, recruiting the types of volunteers needed, and obtaining Board members.

Sources:

• Statistics Canada "Satellite Account of Non-profit Institutions and Volunteering: 1997 to 2004."

• H. Hall et al., "The Canadian Non-profit and Voluntary Sector in Comparative Perspective," The John Hopkins Institute for Policy Studies, 2005.

Questions

1. If Canada followed a pure capitalist system, how would the non-profit sector be affected?

2. Do you agree with the standard measure of GDP for non-profit organizations (i.e., to include a replacement cost value of volunteer work)? Explain.

3. Why do you think these organizations are experiencing difficulties in recruiting volunteers? How could you be encouraged to volunteer?