Working with Volunteers

This article discusses working with volunteers and what this entails in terms of, among other things, compensation and payment for volunteers. This is common in the cultural sector. This is due to the fact that budgets are often somewhat limited, which means you are unable to hire (fully) paid staff. In addition, the cultural sector is the perfect place to work with volunteers because there is often a social aspect associated with the initiative or project.

What makes you a volunteer?

Not everyone who does unpaid work is a volunteer—at least not from the perspective of the Internal Revenue Service. There are a few requirements you must meet:

• The work you perform is for an organization that does not pay corporate income tax. This could also be a sports club, a sports foundation, or an ANBI-designated organization.
• You are not employed by this organization.
• The work you do isn't your actual job.
• At most, you’ll receive a volunteer stipend. In principle, this is so low that it’s out of proportion to the scope and time required for the work.

The amount of the volunteer allowance

You may give a volunteer a small stipend to cover their expenses or as a token of appreciation for their efforts. There are a number of conditions attached to this. The information below outlines the regulations in effect as of 2019, which can be found on the IRS website. Please keep an eye on this, as it may be updated in the future.

Volunteers aged 22 and older

It has been agreed that the compensation is based on an hourly rate, with a maximum of €5. In addition, there is a maximum of €170 per month and €1,700 per year. This maximum applies to all work performed, not just for a single project or client.

Volunteers under the age of 22

It has been agreed that the compensation is based on an hourly rate, with a maximum of €2.75. In addition, there is a maximum of €170 per month and €1,700 per year. This maximum applies to all work performed, not just for a single project or client.

No hourly rate (all ages)

Suppose you are not paid by the hour but receive a fixed agreed-upon amount. That is possible, but there is also a cap on that amount: €170 per month (for all assignments combined) and €1,700 per year.

Is the volunteer allowance taxable?

If the payments in question are limited to the volunteer allowances mentioned above, they are tax-free. However, if you receive more than the aforementioned allowances as a volunteer, those additional amounts are subject to payroll and income tax. The company or organization for which you perform the work will then withhold payroll tax from the allowance. The volunteer must report this on their income tax return. If you volunteer for multiple organizations, you must include this in your income tax return even if the total of all allowances exceeds the maximum limit.

Reimbursement of expenses

In addition to the compensation for a volunteer’s services, the volunteer may also incur expenses. The reimbursement for these expenses is not taxable. This could include, for example, expenses advanced for office supplies or production materials. In addition, a (cost-covering) travel allowance may be provided. For car travel, this is the average mileage rate at which the volunteer may drive. This may therefore differ slightly from the €0.19 per kilometer that applies to salaried employees. You can use an expense report form to claim reimbursement for these costs.

Administration

When your project or initiative is funded, it is standard practice to maintain records. If you work with volunteers, you should include their volunteer agreements in these records, and the same applies to submitted expense reports.

Volunteer Agreement

The volunteer agreement outlines the terms and conditions related to the work the volunteer will perform and the organization for which they will be working. It is important that this agreement be signed before the volunteer begins their work. In addition, the volunteer must always provide a copy of their ID. We have posted a sample volunteer agreement on this website for you. You can use it and adapt it to your own needs. Insurance In Arnhem, every volunteer is insured for damage and accidents that occur while performing volunteer work. You don’t need to do anything for this, except report any damage. You can find all the details about these regulations on the Arnhem municipal website.

Learn more

If you would like to stay informed about the correct volunteer allowances and other information related to working with volunteers, we recommend that you keep an eye on the Tax and Customs Administration’s website.

If, based on your expertise, you have any relevant knowledge on this topic, or if you see ways to improve this text, we would love to hear from you at info@cultuuracademy.nl.