The Economic Value of the Charitable Sector
Chapter 5: The Aggregate Benefits of the Charitable Sector: Summary
5. The aggregate beneﬁts of the charitable sector: summary 5.1 INTRODUCTION A methodology for valuing the output of the charitable sector was developed in Chapter 1. The methodology requires an estimation of the net social value of the charitable sector, deﬁned as the difference between total social beneﬁts and total social costs. The main challenge of implementing this approach is to put monetary values on the beneﬁts that charities generate for their immediate target groups, as well as for society at large. This task was undertaken in Chapter 2, where members of the general public were asked to state what additional contributions they would be willing to make over and above their existing donations in order to avoid losing the services provided by housing charities, among others, and in Chapter 3 for the beneﬁciaries of hostels for the homeless in London, who were asked to state their willingness to accept compensation for the loss of these services. Issues relating to the valuation of volunteer time were discussed in Chapter 4. Now that all of these missing components are in place, it is possible to proceed with the overall valuation exercise outlined in Chapter 1. 5.2 ACCOUNTING FRAMEWORK 5.2.1 Total Social Value As noted in Chapter 1, the total social value of charities is the sum of direct beneﬁts to users, beneﬁts to volunteers and indirect beneﬁts to the general public. Total social value (TSV) = direct user beneﬁts + beneﬁts to...
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