CBS’ 60 Minutes had a piece on the battle over pennies that got us thinking about the value of money (check it out here). The arguments over pennies ar">e not about who has them and who doesn’t, but about whether they should exist at all.  Why the talk about getting rid of the penny?  For starters, because of the inflating prices of copper and zinc, the two metals that make up the penny, a penny is now valued at 1.67 cents, more than its 1 cent determined worth.  Or what about the idea that 1 cent can't buy, well, anything these days?  Another argument is that transactions at the register involving the penny take more time.  And in today’s word, it would be hard to argue that more time is less valuable than a single penny.  On the other hand, groups like Americans for Common Cents argue that the penny is worth its weight as a monetary unit and a piece of Americana (nostalgia and culture).

But how does one determine the real value on a penny?  Or a dollar for that matter.  For nonprofits, putting a value on dollars is critical to their existence.  And were not talking about simplistic claims from those infomercials that $2 a day will save a child.  But nonprofits can put a value on volunteers, on donations, and on their programming.  Volunteers are a large part of many functioning organizations. According to The Independent Sector, the dollar value of a volunteer in 2006 was $18.77, over three times the federal minimum wage in the same year.  DonorPowerBlog discusses net present value or NPV calculation for nonprofits, which helps nonprofits in determining smart donor reactivation programs that will be worth both the time and money involved.  Smart fundraising is an added value to any organization. 

So, how can nonprofits put a value on money when it comes to their programming? Try being effective.  Creating and implementing programs that work.  Programs that make your $18 an hour volunteers want to be a part of your organizations and goals and come back.  And, we have to say it, be sure to measure your programs to ensure that their value, unlike the current state of the dollar, never dips.   

The value of money, beyond the simple economics of it, has been up for debate for years.  No doubt, the argument over the penny and all its worth (or non-worth for that matter) is likely to continue.  When it comes to nonprofits, the value of money is more than what stands behind it. Its what lies in front of it.