12. VALUATION OF VOLUNTEER SERVICES

     To count volunteer services as part of its non-Federal match, an agency must first assign values to the volunteer services. These valuations must be consistent with agency personnel policies and with community standards. They must also be approved by the agency's chief fiscal officer and its independent auditor.
 

12.1 Establishment of Wage Comparability Rates
 

     Wage comparability rates must be established for the volunteer hours of each category of volunteer. These rates for volunteer services should be in line with agency and community salary scales. For example, the hourly rate of a volunteer aide would have a value comparable to that of paid classroom aides; the rate for the volunteer services of a health professional would be comparable to the going community rate for such services.

     In addition to the hourly rate, fringe benefits may be included as part of the valuation of unpaid volunteer services under certain conditions.

REFERENCE 
 TEXT CITATION 

"HDS Discretionary Grants 
Administration Manual." TN86-1, 
Attachment C--Cost Principles for 
Nonprofit Organizations, 0MB Circular 
A-122. 
Attachment B. Selected Items of Costs 

10. Donations 

a. Services received 

(5) The value of the donated services may be used to meet cost sharing or matching requirements under conditions described in Attachment E, 0MB Circular No. A-110... 

(6) Fair market value of donated services shall be computed as follows: 

    (a) Rates for Volunteer Services. Rates for volunteers shall be consistent with those regular rates paid for similar work in other activities of the organization. In cases where the kinds of skills involved are not found in the other activities of the organization, the rates used shall be consistent with those paid for similar work in the labor market in which the organization competes for such skills.
 

"HDS Discretionary Grants 
Administration Manual." TN86-1, 
Attachment A--Administration of Grants. 
Federal Regulations, Title 45, Part 74, 
Subpart G, Cost Sharing or Matching. 

74.54 Valuation of donated services
(a) Volunteer Services 
Unpaid services provided to a recipient by individuals shall be valued at rates consistent with those ordinarily paid for similar work in the recipient's organization. 

If the recipient does not have employees performing similar work, the rates shall be consistent with those ordinarily paid by other employers for similar work in the same labor market. 

In either case, a reasonable amount for fringe benefits may be included in the valuation.
 

12.2 Services from Employees of Another Employer
 

     In placing a value on volunteer services, a distinction is made by HDS between the unpaid volunteer services discussed above and the services of a person paid for and donated by his or her employer. In the latter case, fringe benefits may not be included, and the value of services is the wage paid by the employer. 

REFERENCE 
 TEXT CITATION 

"HDS Discretionary Grants 
Administration ManuaL" TN86-1, 
Attachment A--Administration of Grants. 
Federal Regulations, Title 45, Part 74, 
Subpart G, Cost Sharing or Matching. 

74.54 Valuation of donated services
(b) Employees of Other Organizations When an employer other than a recipient or cost-type contractor furnishes free of charge the services of an employee in the employee's normal line of work, the services shall be valued at the employee's regular rate of pay exclusive of the employer's fringe benefits and overhead costs. If the services are in a different line of work, paragraph (a) of this section shall apply see Section 12.1, second reference (a) Volunteer Services].
 

12.3 Services by Volunteer Decision makers

     An assessment must also be made of the value to the agency of the time spent by board and Policy Council members and by members of advisory and evaluation groups.

REFERENCE 
 TEXT CITATION 

"HDS Discretionary Grants Administration Manual." TN86-1. 

Chapter 2. Cost Sharing or Matching
D. Valuation of Third-Party In-Kind Contributions 

1. Volunteer Services 

... Each hour of volunteer service may be counted if the service is an integral and necessary part of an approved project.... 

Examples of volunteer services which may be counted as third-party in-kind contribution include: 

    The reasonable value of time donated by Head Start community members, Board, Policy Council, and parents in conducting the Performance Standards Self-Assessment and/or attending business meetings.
 
 

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