What is your nonprofit’s superpower? It could be your amazing programs, your strong donor base, your passionate leaders and advocates. And there is an argument that all these point to your volunteers.
Volunteers support your mission and vision. They are an essential connection to your community. They provide a diverse skill set to your organization, increasing your capacity and reach, and often are advocates for your cause while participating in crucial fundraising efforts.
Volunteers give their time freely, without the expectation of pay. And as of April 23, 2024, Independent Sector calculates the national value of a volunteer hour is $33.49. Volunteers are special, only permitted for nonprofit, educational, religious, governmental, or charitable organizations. In general, volunteers should not receive anything of value for their service, but may be reimbursed for necessary expenses or occasionally given a small token of appreciation. And by state law, nonprofits cannot provide compensation that could make them an employee.
So how do you show your appreciation to these valuable supporters and make sure that you are taking care of your people while following laws and rules? Here are some ideas.
Correctly classify volunteers and employees
Be certain that your organization understands the difference between an employee and a volunteer. While you are allowed to provide stipends to volunteers, these payments should only cover expense reimbursement, and not compensation for labor provided. If they are paid for their services beyond reimbursement for expenses, or reasonable benefits, they are considered employees and not volunteers. It’s crucial to classify them correctly or be exposed to avoid potential liabilities, including unpaid minimum wages, overtime pay, and issues with federal, state, and local tax withholdings.
Can employees volunteer for their organization? Yes, but only in specific circumstances. They cannot volunteer in a capacity the same, similar to, or related to their job duties as an employee. And employees cannot volunteer their services at the employer’s request or direction or during their normal working hours. For example, a nonprofit’s graphic designer cannot volunteer to design the poster for the organization’s fundraiser, but they could volunteer after hours at the fundraiser to check-in guests at the door. However, it is a best practice to pay all employees for their work and do not treat them as volunteers.
Provide workers’ compensation for volunteers
In Washington, some government and private nonprofit charitable organizations may choose to purchase workers’ compensation coverage for volunteers, which only covers medical costs. Volunteer coverage does not include the other usual benefits of workers’ compensation, such as wage replacement, vocational and retraining costs, permanent partial disability payments, or death benefits. Check with your general insurance provider to see if your volunteers are covered by your other insurance policies. Refer to Washington State Labor and Industries (L&I) for more information.
Know the laws regarding internships
Are you interested in bringing on an intern? Interns are individuals participating in hands-on, work-related learning. An internship should provide significant educational benefits. In certain circumstances, unpaid internships are acceptable. This L&I Unpaid Internships 101 resource outlines factors to determine whether an intern is an employee for wage and hours laws.
Interns may receive forms of compensation such as reimbursement or a stipend, however if an intern is paid a regular wage, they are considered an employee under the state’s Minimum Wage Act. Interns cannot displace or replace an employee. The intern and employer should understand the intern is not entitled to a paid job at the end of the internship. Learn more from L&I about internships, apprenticeships, and volunteers.
Celebrate your volunteers!
Each April nonprofits observe National Volunteer Week to celebrate the impact of volunteer service on communities, inspire others to take action, and recognize the power of volunteers to make a difference. There are local events, volunteer projects, and social media conversations that you can participate in to share the impact of volunteers.
How do you care for your volunteers during the rest of the year? Here are some ideas:
- Make a volunteer application and job descriptions. Outlining a volunteer role helps ensure your volunteers know what they are signing up for and are more satisfied with their service to the community. The application is also a good opportunity to collect important information like emergency contacts, background checks, photo release, and ways to match volunteer skills and interests with needs at your organization.
- Organize a volunteer orientation for new or perspective volunteers. Make sure they have sufficient training to fill their role and operate safely, and that they meet and connect with the people they are going to work with.
- Create a volunteer handbook that helps volunteers get to know the organization and clearly outlines policies and procedures.
- Keep a record of volunteer hours. This information can be listed as an important asset to your organization on grant applications or an annual report to your community and donors. It is also a good opportunity to celebrate volunteers who achieve impressive milestones of time contributed to your mission!
- Recognize volunteers with personal thank you’s or public statements of how appreciated they are in your newsletter, social media, or at a special event. Consider implementing a volunteer of the month program to highlight individual contributions of time and talent. And remember the power of everyday gratitude in the moment and sharing how volunteer contributions impact the organization and make a meaningful difference in delivering your mission.
Additional resources:
- Serve Washington
- Points of Light
- Workers in Nonprofits, online toolkit from Nonprofit Association of Washington
- Volunteer Management Guide from 501 Commons
- Employee or Volunteer? Classifying Teams tool from Nonprofit Risk Management Center