Volunteering worth $50 billion to Canadian economy

Volunteering not only makes you feel good, turns out it’s also good for the economy.

A new report from TD Bank has pegged the economic value of volunteering in Canada at $50 billion each year, or about three per cent of Canada’s GDP, which is the same size as the Manitoba economy.

“The economic value of volunteering demonstrates that it is possible to get more than what you pay for,” said the report’s authors, TD economists Craig Alexander and Sonya Gulati.

“Put simply, $50 billion represents a lot of value. It is too large to simply dismiss.”

The report marks National Volunteer Week in Canada, which runs from April 21 to 27, and celebrates the estimated 13.3 million volunteers across Canada.

While some might argue volunteering is just free labour, others see it as a way to advance skills or provide selfless acts that allow them to give back to the community.

TD argues volunteerism provides economic value that is “very real,” yet “seldom noticed and rarely discussed.”

For example, it cites opportunity cost for spending a limited resource, “in this case, time – on unpaid work as opposed to paid work.” An example is gaining a skill that better prepares someone for a paid job in the future. There is also value in the generation of social capital, or the “intangible benefits associated with volunteering,” the report says.

TD came up with the $50-billion figure by calculating the estimated 2.1 billion hours worked at average rate of $24 per hour. The data is based on the 2010 Canada Survey of Giving, Volunteering and Participating, from Statistics Canada .

The $50-billion figure is “conservative,” TD says, because it doesn’t include capital investment, for example. The total is also said to be roughly half of the value of Canada’s non-profit sector, as estimated by Statistics Canada.

“If the value of volunteer work were a company, it would be in the league of the largest firms in Canada listed in the S&P/TSX Composite Index – on the basis of market capitalization – sandwiched between corporate giants like Suncor Energy and the Canadian National Railway,” the report says.

While TD sees the report as a fitting way to celebrate National Volunteer Week, the authors addressed the potential “passionate rebuttal” that putting a dollar figure on volunteerism may be considered “distasteful and/or disrespectful.”

“It is short-sighted not to appreciate this perspective and to flippantly ignore the passionate rebuttal to economic valuation,” the report says.

“Despite the skepticism attached to the exercise, putting numbers to volunteering does help to demonstrate the societal and economic importance … Comparison and context enable us to understand and protect volunteering which is generally overlooked and its importance dismissed at first glance. An economic lens fosters appreciation for a crucial element of the social fabric that binds the community together.”

National Volunteer Week began in 1943 as a way to draw attention to the contribution women made at home during the Second World War, according to Volunteer Canada www.volunteer.ca