Volunteering and its financial and reporting implications on Maltese voluntary organisations : a study

Abstract

PURPOSE: This dissertation seeks to obtain an understanding of the importance of volunteering in Malta, and its financial and reporting implications. Therefore, the objective of this study is to (i) ascertain the perceptions of the Office of the Commissioner for Voluntary Organisations (OCVO), the Malta Council for the Voluntary Sector (MCVS) and financial administrators of local VOs on the importance of volunteer contributions of service; (ii) determine the drivers of and the barriers to reporting such contributions in the financial statements of local VOs; and (iii) examine the current valuation methods and investigate possible ways of valuing such contributions and reporting them in the financial statements of local VOs. DESIGN: A qualitative approach was adopted. Semi-structured interviews were conducted with sixteen voluntary organisation (VO) representatives, four representatives of the OCVO, and a representative of the MCVS. FINDINGS: This study indicated that most VOs would be challenged to fulfil their missions without volunteers, who provide several benefits to their organisation. Furthermore, it was found that the main drivers of reporting volunteer contributions are: volunteer appreciation; presenting a more complete organisational picture; and sustainability and planning. Conversely, the main barriers to reporting such contributions were found to be: the complexity of quantifying them; limited funds and time; and the inappropriateness of current accounting standards. The replacement cost and outcome evaluation methods were the most preferred valuation methods. This study found that while some VOs measure the value of volunteer contributions by using replacement cost and outcome evaluation methods, reporting the value of such contributions is much less common. CONCLUSIONS: Reporting the contributions of service of volunteers results in increased accountability and transparency towards stakeholders and the recognition of volunteer efforts, ensuring the sustainability of the voluntary sector. However, the barriers to reporting such contributions need to be addressed, to encourage their reporting. IMPLICATIONS: This is the first study to be carried out in Malta on how local VOs measure or report the value of volunteer contributions of service. This study should serve to encourage Maltese VOs to incorporate volunteer contributions of service in their reports. Regulators may use this information to establish adequate procedures and regulations to guide VOs in reporting volunteer contributions.