Completely agree. For the nonprofit I volunteer with, most of them don't want or expect a large recognition. They're simply helping because they feel strongly about the cause. But that doesn't mean they should go unrecognized. We understood they were taking time out of their day to do physical labor or keep our events running smoothly. In our newsletter (we use Constant Contact!), I'd include a feature block with a photo of the volunteer, how long they've been with us, and any special projects they were involved with.
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