Volunteer Time Off (VTO): A Guide for Employers

A benefit that provides employees with paid time off to volunteer for charitable organizations or community causes of their choice.
Jimmy Law
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What Is Volunteer Time Off?

Volunteer Time Off (VTO) is a benefit that provides employees with paid time off to volunteer for charitable organizations or community causes of their choice. Unlike regular PTO used for vacation or personal needs, VTO is specifically designated for giving back to the community.

Companies offer VTO to support corporate social responsibility goals, boost employee engagement, and strengthen community ties.

How VTO Programs Work

Time Allotment

Companies typically provide:

The amount varies based on company size, culture, and resources. Even a single day per year can have a meaningful impact.

Eligible Organizations

Most VTO policies cover:

Some companies restrict certain types of organizations (political campaigns, for-profit entities).

Verification Requirements

Companies may require:

The level of verification varies from honor system to strict documentation.

VTO vs. Regular PTO

Separate Banks

VTO is usually a separate time-off category, distinct from vacation or sick leave:

Combined PTO

Some companies include volunteer time within overall PTO allotment, giving employees flexibility to use time for volunteering or personal purposes.

Benefits of Offering VTO

Employee Engagement

Employees who use VTO report:

Recruitment and Retention

Particularly important for younger workers, VTO is an attractive benefit that differentiates employers in competitive markets.

Corporate Social Responsibility

VTO demonstrates commitment to community impact. Companies can amplify individual volunteer efforts through organized programs.

Team Building

Group volunteer activities build relationships and strengthen workplace culture outside the normal office environment.

Skill Development

Volunteering can develop leadership, project management, and communication skills that transfer back to work.

Public Relations

Publicizing volunteer efforts (with employee permission) generates positive publicity and strengthens brand reputation.

Types of VTO Programs

Individual Volunteering

Employees choose where and when to volunteer:

Company-Organized Events

The company arranges group volunteer opportunities:

Hybrid Approach

Combine individual VTO hours with company-organized volunteer days. Employees get both flexibility and team experiences.

Skilled Volunteering

Employees use their professional skills to help nonprofits:

Implementing a VTO Program

Define the Policy

Establish clear guidelines:

Communicate the Program

Many employees don't know VTO exists or how to use it. Promote through:

Track Usage

Use the same systems that track other leave types:

Measure Impact

Track metrics like:

Partner with Organizations

Build relationships with local nonprofits that need volunteers. This makes it easier for employees to find opportunities.

VTO Policy Considerations

Eligibility

Who can use VTO?

Advance Notice

Require requests with sufficient advance notice for scheduling (e.g., 1-2 weeks).

Restrictions

Clarify what activities qualify:

Proof Requirements

Balance verification with trust:

Use-It-or-Lose-It

Most VTO programs don't allow rollover:

Tax and Payroll Considerations

Taxable to Employees

VTO hours are paid time off, so compensation is taxable as regular wages.

Tax Deductible for Employers

Wages paid during VTO are deductible business expenses like other compensation.

Not Charitable Deduction

The company cannot claim VTO hours as charitable contributions. Only actual cash or property donations qualify.

FLSA Compliance

VTO hours count as hours worked for purposes of calculating overtime for non-exempt employees.

Combining VTO with Other Corporate Giving

Matching Gifts

Match employee donations to the organizations where they volunteer.

Volunteer Grants

Provide financial grants to organizations where employees volunteer regularly (e.g., $500 grant for 40 hours of service).

Skills-Based Pro Bono

Formal programs connecting employee expertise with nonprofit needs, sometimes during work hours beyond VTO allotment.

Dollars for Doers

Corporate donations triggered by employee volunteer hours.

Challenges and Solutions

Low Participation

If employees aren't using VTO:

Verification Burden

If tracking is too cumbersome:

Scheduling Conflicts

When everyone wants to volunteer during work hours:

Finding Opportunities

Some employees struggle to find suitable opportunities:

Industry Examples

Service Businesses

Offer free services in support of volunteer causes. For example, an automotive service business might provide oil changes or repairs at cost for an organization.

Financial Services

Frequently provide VTO combined with financial literacy volunteering in schools and communities.

Healthcare

Medical professionals may volunteer in free clinics or health fairs during VTO hours.

Retail and Hospitality

Often organize group volunteer days around holidays (Thanksgiving food drives, toy donations, etc.).

Measuring ROI of VTO

Employee Metrics

Community Impact

Business Outcomes

Best Practices

Start Small

Begin with 8-16 hours annually. You can always expand a successful program.

Lead from the Top

When executives use VTO and share their experiences, it normalizes and encourages participation.

Make It Easy

Remove barriers:

Celebrate Participation

Recognize employees who use VTO:

Review Annually

Evaluate the program each year:

Volunteer Time Off strengthens the connection between employees, companies, and communities. Even a modest program demonstrates that your company values giving back. As corporate social responsibility becomes increasingly important to employees and customers alike, VTO offers a meaningful way to live company values while supporting causes that matter to your team.

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