The Risks of Paying Volunteers
Should you pay volunteers a little something? Though well-intentioned, following through on this idea could have unintended consequences. While it is possible to provide a modest payment for a group of volunteers who work for a nonprofit due to the hard work they put forth, it is not a good idea. Many nonprofits use the excuse that they can reward volunteers by giving them a little something for their efforts. That is fine, as long as the reward is an in-kind gesture that shows that they are valued by the nonprofit. What many people mistakenly think is a small monetary payment to help volunteers arrive at the organization if it is not feasible to pay them.
Because there are very specific rules in many jurisdictions and federal laws governing the employment and volunteer activities of employees and volunteers, it is hard to distinguish the two. In some jurisdictions, it is generally agreed upon to pay employees for the work they do; it is in general agreement with volunteer law to pay volunteers as employees. If you provide a paid service to a given group of volunteers, you are effectively making them employees of the nonprofit. These are the implications in various circumstances:
- Termination: Some of the people who work there are likely to sue to get the health insurance benefits that they are entitled to.
- Injury or Illness: If he or she is injured while working for your organization, or if he or she claims disability compensation, they are considered to be working as professionals.
- Surviving Dependents: When a certain person is unable to work because he or she is disabled or is dying suddenly, his or her relatives can file suit to get the benefits that employees who work for their organizations regularly get.
- Legal Battles: If one of your employees is very angry with one of the directors of the non-profit, whoever is the director is likely to tell the media or to a federally appointed representative about his or her conduct. It may result in the loss of funds for the nonprofit, and the resulting loss would cost the Survivors the ability to secure a new position or to continue to receive health benefits from your plan.
As mentioned previously, paying volunteers is a complicated process with little upside. Nonprofits are better off finding other ways to show appreciation to their volunteers that do not include financial compensation in the form of payment. Likewise, volunteers are a part of a nonprofit, not for the money but for the sense of purpose it fulfills. If finances are the primary motivation for service, than it is not actually service in the first place.
To more effectively track the hours worked and the information of those who serve in your organization, check out MyVolunteers. MyVolunteers is part of MyCommunity, which exists to build relationships and tools that equip organizations so that they can maximize their impact. Our suite of tools is designed to help organizations of all sizes focus on their mission without worrying about the logistics. We understand the importance of building strong relationships, so we provide the necessary tools to maximize impact and make a difference like our easy-to-use platforms MyDonors and MyVolunteers. Likewise, MyNonprofitCoach equips nonprofits with the training they need to be successful. Schedule a demo for any of our solutions here.
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