Golden Hint, volunteering, pro bono and barter: what's the difference?

This explainer is for board members and leaders who've been asked, "Should we join Golden Hint?" It's a fair question to ask carefully. The short answer: on the Golden Hint Exchange, charities give each other skilled help and keep score in credits, where one hour of help is worth 1 credit. Credits are a record of contribution within a community. They have no cash value, and they aren't wages, payment for services or a donation. It's closest to what's often called a time bank, a system where people trade services using time instead of money. The credit rules are still a draft being reviewed by the Foundation's legal and tax advisers, so read them yourself, and take any questions about your own situation to a qualified professional.

How it compares

The Golden Hint column comes from our credit rules. The other columns are general descriptions, not legal definitions; arrangements vary.

Where the differences come from

• Time bank versus volunteering. TimeBanks.Org, a time-banking organization, puts it this way: volunteering is often one-way giving, while time banking is reciprocal, and everyone gives and receives.
• Time bank versus barter. TimeBanks.Org says time banking uses a shared credit system, so you don't have to trade with the same person. In barter, two parties swap directly. On Golden Hint, the charity that helps you may never need anything from you. It earns credits it can spend with someone else.
• Every hour counts the same. TimeBanks.Org says this promotes equality and inclusion. Golden Hint made the same choice: an hour of legal guidance and an hour of design help both count as 1 credit. Our post on why an hour is an hour explains why.

What a credit is, and isn't

From the credit rules:

• A credit is one hour of help given or received, or an agreed price for a fixed piece of work (between 0.5 and 20 credits).
• A credit is not money, or anything that can be swapped for money; payment for services; wages; a donation; or tax-deductible.
• Credits can't be bought, sold, or converted into money, goods or anything else outside Golden Hint.
• Cash stays out. The Exchange is for giving and getting help, not for selling services. Members don't pay each other for exchanges, and an exchange isn't a way in to a paid contract (see the community guidelines).
• Some trades aren't allowed. Organizations under common control can't trade with each other, and nobody may trade credits back and forth to inflate balances.

Things your board may ask

• "Is the help a tax-deductible gift?" The credit rules say credits aren't a donation and aren't tax-deductible. Separately, IRS Publication 526 says a person can't deduct the value of their time or services given to a charity. For anything about your own charity's taxes, ask a qualified tax professional.
• "Can our paid staff give help on work time?" That's a decision for your charity. The U.S. Department of Labor says a nonprofit's paid employees can't volunteer to do the same kind of work they're paid for at their own charity. Our guides on employee or contractor and volunteer management cover the basics.
• "Who decides if something goes wrong?" If two charities disagree about an exchange, the credits stay held and the Golden Hint team reviews it, aiming to decide within 14 days. Every decision that changes a balance is logged, with who made it and why.
• "What happens to our credits if we stop using it?" Credits don't expire while you're active. After 24 months with no activity, available credits return to the community pool, with 60 days' notice first.
• "What does it cost?" Golden Hint is free for charities.

Questions to take to your own adviser

• How should our charity record skilled help it receives, and gives, in our books and annual return?
• Are there any limits on our staff giving help to another charity during paid hours?
• Does our insurance cover our people when they help another organization?

Your board's checklist

• We read the credit rules and the community guidelines.
• We understand that credits have no cash value and aren't a donation.
• We agreed who at our charity can propose, agree and confirm exchanges.
• We decided whether staff may give help during paid hours, and how much.
• We asked our own adviser any tax, accounting or insurance questions.
• We know how to raise a dispute or report a problem.

Ready to see how it works in practice? Read your first exchange, step by step.