Over 200 community volunteers who belong to different committees of an alcohol, tobacco, and other drug abuse prevention coalition completed a comprehensive survey designed to measure specific variables associated with coalition functioning including costs and benefits of participation. Community volunteers are one of the coalition’s greatest resources, and benefits and costs may mediate member participation throughout the different stages of coalition functioning. The survey was completed first at the formation stage (Time l), and then eight to ten months later at the implementation stage (Time 2) of the coalition’s development. Contrary to most previous research, a principal component analysis of the benefit and cost items yielded only one benefit component and one cost component. Also, the authors found that benefits and costs distinguished between the members of “High” and “Low” attendance groups only at Time 2. We consider the implications for coalition functioning, empowerment theory, and “incentive/cost management.” We also describe how we provided the partnerships with information in order to assist them to implement the incentivefcost management process. Community coalitions are frequently being used to address serious public health concerns. For example, the Center for Substance Abuse Prevention (CSAP) currently funds 245 communities across the country to create community partnerships in order to mobilize individuals and organizations to address the alcohol, tobacco, and other drug abuse (ATODA) problems at a local level. CSAP partnerships form coalitions involving youth and parent volunteers, in addition to volunteers from business, the criminal justice system, the media, health services, the religious community, as well as community and school-based personnel to develop and implement a comprehensive plan for reducing ATODA within their community. The coalition studied in this research is one of the 245 CSAP partnerships. Maximizing volunteer participation is important because the coalition depends heavily on the efforts of these volunteers to do much of the coalition’s work. Gaining an understanding of the benefits and the costs that volunteer coalition members experience from their participation is the first step in this process. Participation, benefit, and cost variables are related in various volunteer organizations (Prestby, Wandersman, Florin, Rich, & Chavis, 1990), political parties (Clarke, Price, Stewart, & Krause, 1978), and business groups (Knoke & Adams, 1987). Since this relationship is robust and useful across several different types of organizations, this study will examine the relationship between participation, benefits, and costs in volunteer coalitions. Researchers have previously studied individuals’ perceptions of benefits and costs (Chavis, Florin, Rich, & Wandersman, 1987; Prestby & Wandersman, 1985; Wandersman & Alderman, 1993; Wan