The Accuracy of Proportional Cost Models: Evidence from Hospital Service Departments

Using data from hospitals in the state of Washington, we examine the time-series behavior of overhead costs. We find that more accurate predictions of changes in costs are usually generated by assuming a cost will not change at all (except for inflation) than by assuming that the cost will change in proportion to changes in activity. We also find that nearly all of the effect of a change in activity on costs appears to occur in the same year as the change in activity. Finally, using a multi-period regression model we find that the proportion of variable costs in the hospital overhead accounts is apparently very modest. These results suggest that costing systems, such as activity-based costing, that assume costs are proportional to activity, will grossly overstate relevant (i.e., incremental) overhead costs for decision-making and performance evaluation purposes.     

Recruiting and Retaining Older Adult Volunteers: Implications for Practice

There is an increased interest in the promotion of volunteering within nonprofit organizations. In this paper organizational supports for recruiting and managing volunteering among older adults are explored. The paper describes an intervention comprising an intergenerational reading program delivered by volunteers in eight schools in the Republic of Ireland. The research draws on qualitative data from a mixed-methods research project (2009–2011) that evaluated outcome and process aspects of the reading program. The qualitative data was collected from a group of older volunteers aged 55 years and older. This present study frames the empirical findings within a volunteering framework that involved deductively analyzing the data using attributes associated with “volunteerability” and “recruitability.” Through this analytical framework a number of features were identified as contributing to greater knowledge of marketing strategies to recruit and retain volunteers within nonprofit organizations. The paper concludes with a set of core practice messages for organizations that rely on volunteers in the delivery of their service.