The ROI of Volunteer Engagement: Boost Funding, Impact & Community Reach
- Vishal Balija
- Jul 31
- 5 min read
When we talk about increasing ROI, we usually jump straight to fundraising tactics—galas, grants, giving campaigns or earned income—gift shop, classes or events. But there’s a powerful strategy hiding in plain sight: volunteer engagement. In this guest blog post, Angela Williamson breaks down why investing in your volunteers isn’t just good-hearted—it’s smart business. From boosting surplus ratios to deepening community awareness, this is about making your mission go further with the people who believe in it most.
The number one way to increase ROI and funding revenue that no one is talking about - volunteer engagement! We’ve used the big events, galas, and golf tournaments, but here’s a longer-lasting way! The way to increase your funding revenue is to be very intentional in your volunteer engagement. Volunteers become evangelists for your organization with the most effective word-of-mouth promotion.
Effective, efficient, and well-implemented volunteer engagement strategy is the longer-lasting way to increase ROI and funding revenue. Implementing an effective and efficient volunteer engagement strategy requires specialized skills and intentional planning.
Engaging volunteers will better your funding individual ratio, surplus ratio, and volunteer participation. They will also increase missional impact, community awareness, and financial donations.
Two Critical Metrics
Funding Individual Ratio: Funding Individual Ratio is an organization's assets compared to their future liabilities. With more individuals engaged effectively with your organization (volunteers), they will be more likely to give you funds, time, and resources which increases your assets coming from individuals compared to future liabilities. It grows your capacity for future growth and provides a cushion for any future downturns/challenges.
Surplus Ratio: Surplus Ratio is the operating surplus or deficit expressed as a percentage of operating income. Volunteers expand the capacity of work and impact for an organization. When you have engaged volunteers, they are getting more tasks done, more outreach accomplished, and more donations of money or items, providing a greater surplus ratio based on the same operating income. The organization is doing more with the same operating budget.
Impact goes beyond just numbers. Lives are changed (staff, volunteer, and clients, community impacted).
That said, volunteer engagement is not free. There needs to be financial and supervisory investment in some infrastructure, supplies, appreciation, nametags, time of staff. However, it pays good dividends in greater ROI!
Four Ways Volunteers Multiply Your Mission
Volunteer Participation: An effective and efficiently run volunteer engagement process will attract volunteers who want to make a difference and impact, and who want to know their time is valued and appreciated. Volunteers will tell others of their wonderful experience and recruit more volunteers.
Increased Missional Impact: With more people, finances, and resources at hand, organizations can focus on making more impact - more food shared, more animals cared for, more people visited, more blood collected, more disaster assistance given, more homes built–more more more–of whatever the impact is of your organization.
Increased Community Awareness: Volunteers are members of your community. They talk with their neighbors, friends, and acquaintances. They will be asked what do you do, or what did you do last week and they’ll mention that they helped build a home, represented a child in the system, donated blood, shared meals, or whatever they do at your organization. This word of mouth is even more powerful than a social media post, ad, or other types of outreach. The more satisfied volunteers you have, the more the word gets out into the community. And if you prepare and have easily accessible ways for them to share your organization, they’ll help spread the news faster. Create a business card they can have in their pocket or wallet, to share about how to connect with your organization or make a social post they can easily share online.
Increased Financial Donations: Volunteers give their time. If they are actively and effectively engaged with your organization, they will be more likely to support your cause with their finances, gifts of items or other needs you may have.
A Tale of Two Budgets: The Volunteer ROI in Action
Below is an example of 2 different organizations, demonstrating the ROI of investing in a volunteer program. Which do you want to be?
Organization 1-no volunteer engagement
Budget: $450,000
End of year balance: $0
Impact: only what 3 people can do while running everything admin, mission, promotion, etc.
By the numbers:
Salary 3 FT staff (with benefits): $225,000
Operating budget (utilities, maintenance, supplies, admin, IT, etc.): $75,000
Mission costs (program supplies, materials, equipment, etc.) : $150,000
No volunteers-3 staff are responsible for EVERYTHING, increasing the risk of burnout, turnover, and costly backfilling if staff leave.
Organization 2-with effective and efficient volunteer engagement and 30 volunteers
Budget: $450,000
End of year balance: $2,500+ (from volunteer donations) that can be spent in addition to budget AND equivalent of 7 months full-time staff person added at $33,490 value
Impact:
Increased meals served, pets saved, homeless helped, etc. with the extra time and funds.
Increased funds and other donated items (physical items like dog food, containers, clothes, etc.)
30 people raising awareness about your mission in the community recruiting more donors and volunteers
By the numbers:
Salary 3 FT staff with benefits, etc.: $225,000
Volunteers adding 7 months of one full-time staff person
Operating budget (utilities, maintenance, supplies, admin, IT, etc.): $75,000
Mission costs (program supplies, materials, equipment, etc.) : $150,000
Volunteers are integrated into all strategy plans and included as part of the staff (albeit unpaid).
30 volunteers engaged effectively and efficiently
Financially = added $2,500
10 give $50 each = 500
10 give $200 = $2,000
10 give supplies to your cause (pet food, blankets, containers, etc.) saving org from purchasing them - increasing surplus ratio
Time = added 7+months of 1 full-time staff person time at value of $33,490
5 give 100 hours annually (8 hours a month)
5 give 50 hours annually (4 hours a month)
10 give 25 hours annually (2 hours a month)
Equals 1,000 hours annually
Independent sector “value of volunteer time” average across US is $33.49
Equals $33,490 value
Equals 7+ months of 1 full-time staff person's time
Outreach into Community = added non paid advertising word of mouth
30 people talking about your mission
20 people recruiting their friends and family to be involved in your mission
15 people sharing your social media posts
1 maybe that is social media savvy that will help you create posts and reach even more people
At the end of the day, volunteers aren’t just a “nice to have”—they’re a strategic asset.
When we invest in them with the same care and intention we give to donors or staff, they give back tenfold in time, talent, and treasure. The return on investment isn’t just financial—it’s relational, reputational, and deeply rooted in your mission. So if you're looking for a sustainable way to expand your impact, grow your reach, and build a stronger community around your work, start with your volunteers. The ROI speaks for itself.
About the Author:
Angela Williamson has been involved with volunteer engagement and leadership for more than 20 years in museums, other nonprofits. In addition to owning her own consulting firm, Angela is the Volunteer & Community Relations Specialist for the Blood Bank of Delmarva, and a consultant with CSR. She can be reached at angelawilliamsoncva@gmail.com
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