The Economic Benefits of Volunteerism

Frank Mirabal is the Founder and President of Contigo Research, Policy & Strategy, a national consulting firm that focuses on issues impacting the Latino community.

President Obama's economic stimulus plan is dominating the headlines this week.  As part of the plan, approximately $200 million is targeted to support service and volunteerism initiatives. The question you may be asking yourself is: "Why is a significant chunk of taxpayer money earmarked for volunteerism programs given the current economic climate?"  Aside from the obvious benefits dedicated volunteers provide to our communities, volunteerism can also be a driver for greater economic mobility.  Here are a few reasons why Americans should support service as a strategy for greater economic mobility:

Educational Incentives.  Volunteerism programs, such as AmeriCorps and AmeriCorps VISTA provide education awards in exchange for a minimum of one year of service to the community. The correlation between educational attainment and income are well documented. Furthermore, one of the major barriers to young people attending college is money. Conversely, education awards provide necessary financial support to students in need.     

Expanded Networks.  Service and volunteerism programs allow young people to expand their social and professional networks.  This is particularly relevant for minority groups, such as Latinos who are highly concentrated in low-wage, low-skill jobs.  To illustrate this point, when I needed a job to pay my college tuition, I turned to my father to see if he had any connections to help me out.  A lifelong meat cutter, his social and professional networks were limited, so I ended up working for minimum wage at a meat packing plant.  Volunteerism strategies, such as service-learning and internships allow young people to connect with professionals that provide valuable academic and career mentorship.  By connecting with career professionals, young people can increase their social and professional capital.   

Career Tool Kit.  Strong volunteerism programs cultivate our future workforce through training and professional development.  Volunteers develop critical thinking, teamwork, problem solving and other transferable skills that extend well-beyond their term of service. Targeted skill development is essential in achieving greater economic mobility, specifically for underrepresented groups.  

Pipeline to Jobs.  Volunteerism allows employers to audition potential employees at little to no cost.  It provides cost savings to the employer and allows volunteers to explore career interests while gaining valuable on-the-job experience. 

With all the economic benefits of service and volunteerism, the real question becomes:  "Why only $200 million?"