Volunteer Expenses

We are often approached by third sector organisations facing confusion about how to handle volunteer expenses. In one case, an organisation mistakenly offered items in lieu of expenses, not recognising that this offer could be construed as a payment, running contrary to UK charity law. Our Development Officers were able to provide guidance and support that not only clarified their obligations but also helped them continue engaging with their volunteers effectively. Paying expenses to volunteers can seem daunting for many organisations, but once you understand the correct process and what volunteers are eligible to claim, it becomes much easier.

Given the current cost of living, we understand how important it is for volunteers not to be left out of pocket. By sharing this information with our wider audience, we aim to clarify any confusion and help ensure all organisations adhere to the Volunteer Charter. This approach will support a diverse and inclusive volunteer force, encouraging individuals from all backgrounds, especially those facing financial barriers, to participate in volunteering and experience the positive impact it brings.

Firstly, it is important to understand this key principle from the Volunteer Charter.

Volunteer Charter, Key Principle 2: Volunteers should receive no financial reward for their time, however, out of pocket expenses should be covered. No one should be prevented from volunteering due to their income.

What Are They?

Expenses are the amount of a volunteer’s own money that has been spent while they are volunteering, for example, the cost of a bus fare to attend a volunteering activity. Receipts for the exact amount (for example, bus tickets) must be obtained by the volunteer and kept by the organisation. Both parties should keep records for due diligence.

Why Should Organisations Reimburse Volunteers?

The payment of expenses to volunteers is crucial for making volunteering accessible to everyone and removing barriers to participation.

Whilst volunteers are not paid, volunteering is not free for organisations to engage with and this should be acknowledged through accurate record-keeping.

What’s Included/Excluded?

You must only reimburse expenses that have actually been spent. This means that you can’t give a volunteer a fixed sum to cover the cost of their lunch, for example. You must only refund the exact amount the volunteer paid, and the volunteer should produce a receipt as proof.

Please note: If a volunteer is given a regular, fixed sum, you risk unintentionally implying a contract of employment. This could breach UK minimum wage legislation and, where volunteers are receiving benefits, will impact their eligibility for those benefits.

Examples of reasonable expenses include:

• Childcare which enables a parent to volunteer.
• Refreshments while volunteering, if not already provided by the organisation.
• Postage, telephone calls, and other admin costs paid for by the volunteer during their volunteering.
• Cost of equipment or materials needed to undertake volunteering which are not already available at the organisation e.g. art consumables, matches, bluetack.
• Specialist clothing or gear required for the volunteering to be done safely (for example, protective goggles or gardening gloves).
• Cost of attendance at training events/courses the volunteer is participating in on behalf of the organisation.
• Travel to and from the place of volunteering.
• Travel undertaken in the course of volunteering, for example, to visit someone the volunteer is befriending.

Travel Expenses

Travel expenses can and should be reimbursed if possible. There are some points specific to travel you should consider when creating an expenses policy:

Organisations involving volunteers should reimburse volunteers for the cost of travel to and from their volunteering, as well as any travel costs incurred during the course of their volunteering. Typically, this is the cost of public transport.

There may be occasions when other forms of travel are necessary. It’s reasonable to cover the cost of a taxi if the volunteer has a disability that prevents them from travelling to a volunteering activity, if adequate transport is unavailable, or if there are safety concerns, such as travelling home in the dark.

Private Vehicles

Cyclists – we recommend payment of the 20p per mile rate, in line with UK Inland Revenue guidance.

Walking – As there is no associated cost for walking, we would not consider it reasonable to reimburse expenses for traveling to a volunteer role on foot.

If your volunteer uses their car as their means of transport to and from their volunteering, follow the guidance as dictated by the Inland Revenue, as follows:

Approved Mileage Rates

The following rates are based on Expenses and benefits: business travel mileage for employees’ own vehicles (UK Government). It is not recommended reimbursing expenses at a higher rate than the Government’s allowances as it would be deemed a taxable benefit.

Vehicle	First 10,000 business miles in tax year	Each mile over 10,000 in tax year
Cars and Vans	45p	25p
Motor Cycles	24p	24p
Bicycles	20p	20p

Find out more:
Check if you need to pay tax on mileage payments as a volunteer driver

Expenses and benefits: business travel mileage for employees’ own vehicles

Learn more about the Approved Mileage Allowance Payment (AMAP) campaign

Does Claiming Expenses Affect Benefits?

According to the UK gov website, individuals can volunteer while receiving benefits as long as they continue to meet all the conditions of their benefit.

Volunteers should tell the office that pays their benefits about any volunteering that they are planning to do before starting. For example:

• How many hours/days you will be volunteering for
• Whether you will be volunteering for the same hours and days each week, or whether they change
• What they will do in your volunteer role
• If any of this changes

As an organisation, you should provide a letter for potential volunteers including this information.

Expenses should not affect benefits as long as accurate records are kept, fixed amounts are never paid, and volunteers are not given gifts in lieu. Only the exact amount spent should be reimbursed, and only if proof of purchase is provided (e.g. receipt for a sandwich and drink bought while volunteering for a full day). Both the volunteer and the organisation should keep accurate records to avoid any questions about their claim.

More than just a policy – a culture of paying expenses.

A volunteer should never feel like they can’t claim the expenses they are entitled to. Be open and clear when discussing expenses to ensure that volunteers feel comfortable asking for reimbursement when they are entitled to it. You can achieve this by making the policy clear and accessible, and by reminding volunteers about it. It should also be included in volunteer handbooks and discussed during inductions.

Some volunteers may try to decline claiming expenses, seeing it as a donation or as an unnecessary cost to a cash-strapped organisation. If this happens, please record it as a donation to support your records of the true costs of volunteering. As mentioned previously, while volunteers are not paid, volunteering is not free for organisations to engage with and this should be recognised.

Whenever possible, It is preferable to provide equipment, refreshments etc., as an organisation before a volunteer has to pay out of pocket. This is particularly important, as some volunteers may not be able to cover any upfront costs, even with the understanding that their expenses will be reimbursed.

Top tip:

Don’t forget to include Volunteer expenses in your budget and in funding applications!

More resources:

Volunteer Expenses – VolunteerWiki

Volunteer Expenses: HMRC Guidelines Breakdown – ExpenseIn Blog

Cost of Living and Practice – Volunteer Scotland

Paying volunteer expenses | NCVO

Her Majesty’s Revenue & Customs (HMRC)

GOV.UK guide to volunteer placements, rights and expenses

Office of the Scottish Charity Regulator (OSCR)