Why Does it Cost SO Much Money to Volunteer Overseas? - How many Staff? and Where?

2006-08-17T08:01:00.000-07:00

Here is a fun exercise when looking at potential organizations (side note: I'm not saying all organizations are bad, or that you should not use one - they really do have additional value - just make sure you are only paying for something that you get). Back to the fun - check out the number of overseas staff as compared to their head office staff. In so many cases you will see 15, 20, 30 staff at 'head office' with fancy titles like "COmmunication Manager" and "Assistant COmmunication Manager" and "Director of Partnerships" and on and on and on. But when you look at country staff they have one or two in each country.

Now I am not saying that they necessarily need a lot more than 2 full time staff in a country (although two would be a minimum) - what I am saying is think about the logic of having your head office staff outnumber your field staff 4, 5, or even 6 to 1. Hmm, why does it cost me $4075 to spend 12 weeks in Ecuador? Well head office salaries alone are costing $65 000 per month. That is either a whole lot of volunteers needed, or a pricing structure that allows for that additional overhead. (Hmm $2275 for the first 4 weeks and the $225 per week...that helps).

The organizations who should be able to provide the highest quality at the lowest price are those that have invested in their overseas staff. Overseas staff should be able to outnumber 'head office' staff 4, 5 or 6 to 1 (I am making that number up, but it seems easily achievable). Where do you want your money going? To the country where you will be visiting and where you would need the support? OR to the payroll of a fat head office who can then continue to grease the marketing machine and get your money? And which do you think is more expensive - your costs in Ecuador or head office costs back home.

Despite what kind of costing breakdown you see, in many cases close to half (or more) of the fee you pay never gets to the country your are traveling to.

Kinda sad isn't it.

Why Does it Cost so Much Money to Volunteer Overseas? - The Additional Week Fee

2006-08-16T07:54:00.000-07:00

Because it is difficult to do on your own.

Because you are willing to pay it!

Because you accept the middle people(s).

Because they are really good at marketing an experience, to which they actually provide very little value add.

Points to ponder - the Additional Week Fee.

How many organizations have their additional week fees set at $150 - $250 per week?

Go ahead and check - most do ( I would almost go as far to say all do except in some of the poorer nations).

Usually by the time you are into the extra weeks portion of your program you have already received the value adds of the program (your arrival/orientation/language training (hopefully), a placement etc.) So at $200 a week on your extra week, you are paying $28.57 per day.

Now consider that you are living with a homestay family. They are probably being paid (again using averages) between $10 and $12 per day for your meals and accommodation.

At $12 per day your actual weekly cost is $84.

The organization that is placing you is charging $200 per week,

They are still paying the homesaty families $84 per week, and keeping the $116 per week left over.

Now aside from the 24/7 emergency service provided while living at that homestay,

what other added value are you getting from the organization. Why are they making $116 a week (more than the family you are living with) for each week you live at the homestay. Very quickly a 12 week volunteer program gets to be very expensive.

Let's look at the cost on an actual 12 week program being sold online today, with a focus on the additional week accommodation fees. (the program prices are real numbers taken from a website for a volunteer organization providing a 12 week Health placement in Ecuador, living with a homestay family, orientation included, no language training ---- the actual costs used are estimates (i.e. $12/day) however feel free to investigate for yourself - they will stand up to scrutiny, and probably even come in on the high side)

Your initial four week program base cost is $2275 (we'll talk about that another time)

Your additional Week cost is $225/wk (homesaty accommodation)

Your additional 8 weeks cost you $1800

Total 12 week cost of $4075

In addition to meals and accommodation and other services during the first 4 weeks, the initial fee ($2275) presumably also includes finding and matching you with a placement and making the necessary arrangements to find you a suitable accommodation for the duration of your program etc.

So now the first four weeks are taken care of, you are now oriented and independent in your new home, and will continue to live there for the remaining 8 weeks of you program.

The additional week cost with the organization is $225 per week.

For your additional 8 weeks living with your homestay family you will have paid $1800.

Your homestay family receives $12 per day or $672 for 8 weeks.

That means that for those 8 weeks that you paid $1800, your homestay family received $672; and the volunteer organization received $1128 for you to live with your homestay family.

Aside from the continued 24 hour emergency support, There is no real value add to the volunteer organization any more. Wouldn't it make more sense in the first 4 weeks for you to have your homestay arranged, and then make arrangements to pay the family directly? Or make arrangements and pay in advance (like it is right now), but for only a reasonable service fee (as there are real costs incurred to ensure the families are paid)?

For sure they have already charged you a fee in the initial program cost (the $2275) for your volunteer placement and homestay placement, as well as for your emergency support - and yet they are still charging volunteers an additional $1128 while you live at a homestay. What is the service at that point, where is the value for the money spent?

Look how drastic a change you can make simply by paying the homestay family direct.

12 Week program base $2275 plus $225/week for 8 add weeks = $4075

Same 12 Week program base $2275 plus $84/wk for 8 add weeks = $2947

Even if you added in a reasonable fee to have the homestay family pay managed, the price is still $1000 cheaper BASED ON ADDITIONAL WEEK COSTS ALONE

Change the per day fee you pay to your homestay to $15 or even $18 per day (maybe you go Galapagos and its more), you still be saving tons of money ($800 - $900+).

Think about that...

Volunteer Overseas? - VolunTourism Exposed

Why Does it Cost SO Much Money to Volunteer Overseas? - How many Staff? and Where?

Why Does it Cost so Much Money to Volunteer Overseas? - The Additional Week Fee