Volunteer Stipend Agreement
· If a volunteer receives more than $500 a year in compensation, he or she is considered an employee and is no longer protected from liability claims under the Federal Voluntary Protection Act. You wrote under the volunteer grant: „$500 a year, 20% more than an employee would be paid“, do you think that more than 20% of what an employee would be paid? A second question is whether the payment of a royalty, scholarship or value benefit compromises the legal status of a volunteer. Unknowingly transforming a volunteer into an employee status has potential negative consequences for the employer and the volunteer. Unlike their fellow volunteers, workers are subject to various forms of legal protection, such as guaranteeing a minimum wage under the Federal State and Federal Wages and Hours Act and protecting against illegal discrimination under Title VII. Not-for-profit employers should therefore exercise caution in determining benefits for voluntary workers. · No regular employees were evicted by volunteers. Since the volunteer is not an active agent, he or she can terminate this voluntary contract at any time for whatever reason it deems necessary. · The volunteer correctly accounts for expenses within a reasonable time – not 60 days after the expenses are counted, and without the change in volunteer status to an employee status, payments to volunteers can also result in a loss of legal protection for the volunteer. In particular, the Volunteer Protection Act protects a volunteer who: (1) provides services; (2) for a non-profit organization or public body; (3) (a) does not receive compensation (although a fair reimbursement of the costs incurred is permitted) or (b) receives nothing valuable instead of compensation of more than $500 per year. Therefore, a „volunteer“ who receives a grant of $50 per month or $600 per year is not protected by the VPA. Fortunately, voluntary recognition gifts or scholarships of limited value are considered a „de minimis benefit“ and are not considered taxable income. PandaTip: The share of salary in this proposed voluntary agreement describes volunteers who are in decline to accept any financial assistance for services provided during the duration of this voluntary agreement. · the volunteer returns all amounts received that go beyond the actual expenses that were made within a reasonable time – no more than 120 days after receiving the excess money.
The volunteer agreed to provide hours per week for the duration of this agreement. According to the U.S. Department of Labor („DOL“), a volunteer is a person who provides services to a non-profit organization, „without promise, expectation or compensation.“ In addition, volunteering meets the following criteria: some things that DOL (directly from this letter) should keep in mind: — „[I] in implementing the 1985 FLSA amendments, Congress has tried to ensure that authentic voluntary activities are not hindered or discouraged.