One euro investment in volunteer work yields significant economic returns, says Kati Ringman from Hämeen University in Finland

Contributing one euro to volunteer work can yield returns that far exceed the initial investment. This claim is supported by significant economic data uncovered by Kati Ringman, the director of Hämeen Setlementti, in her thesis which examines the financial impacts of organizational work. This thesis forms part of her advanced business studies at Hämeen University of Applied Sciences.

Ringman focused her calculations on her own organization, which coordinates volunteer efforts catering to youth, seniors, immigrants, and the unemployed. With government support, the output of their work has increased exponentially. While Ringman received attention from Olli Kärkkäinen, the strategic director at the Ministry of Finance, he cautioned against oversimplifying the economic benefits, emphasizing that the core aim of public funding is to enhance individual well-being.

Ringman advocates for more recognition of the economic implications of volunteer work. She noted that measuring the economic effects of social investments is still in its initial stages, leading to a general lack of understanding. Volunteering is often viewed as “soft” work, where value is measured by sentiment rather than monetary impact, yet she asserts that financial arguments resonate with businesses and policymakers alike.

Her findings indicate that government funding primarily circulates within the regional economy, with over 10 million euros remaining within Kanta-Häme for local salaries and rentals. She also highlighted the substantial contribution of volunteers, stating that just five percent of local welfare organizations represent a workforce equivalent to 90 full-time positions.

Moreover, she discovered that investing one euro in support services for young individuals could potentially save up to 500 euros for society. Kärkkäinen pointed out the need for a credible comparison group to assess the preventive effects of services adequately, suggesting that further academic collaboration would enhance understanding in this area. Ringman echoes this sentiment, hoping her research stirs a broader societal discussion on the importance of volunteer work.