Whether you have volunteers helping at your nonprofit several days a week or only for a few days a year, volunteers are an important part of any nonprofit organization. Volunteers also raise unique questions for any nonprofit organization. Here are brief answers to four common questions about volunteers and nonprofits.
What’s the difference between a volunteer and an employee?
The exact definition of a “volunteer” depends on the specific law at issue; however, generally speaking, a volunteer is a person who intends to provide services to a nonprofit for public service, religious, or humanitarian objectives without any expectation of compensation, either monetary compensation or in-kind compensation. They offer their time and services freely and without coercion, direct or implied, from the nonprofit. Conversely, an employee is someone who expects to be paid for the work they provide to a nonprofit, and unlike volunteers, employees are also covered under numerous employment laws, such as the Fair Labor Standards Act, California’s wage and hour laws, California’s sick leave law, worker’s compensation laws, and Title VII of the 1964 Civil Rights Act, to name a few. Volunteers are generally not protected under these laws, though there are some exceptions, were protections are extended to volunteers. For example, the Fair Employment and Housing Act protects volunteers from harassment. (See Government Code section 12940(j)(1).)
Can we still compensate our volunteers with a stipend?
It is understandable that you want to give something to your volunteers to show how much you value and appreciate them and their time. Although a volunteer may receive, for example, reasonable meals, reimbursement for incidental expenses, or nominal nonmonetary benefits, it can be risky to provide stipends or other similar benefits because they could be construed as a substitute for more standard forms of compensation, like hourly wages. For example, providing your volunteers with a T-shirt to wear during a beach clean-up and keep afterward is likely insufficient to create an expectation of compensation. However, promising volunteers a stipend at the end of their service could, depending on the other circumstances, be construed as a form of compensation, creating an argument that the person is misclassified as a volunteer and, therefore, entitled to all of the protections and benefits of employment laws. Accordingly, before paying volunteers a stipend, it is a good practice to speak with an employment attorney to help you evaluate the risks of your volunteer program design and assess alternative options or modifications to achieve your program objectives.
Can our employees volunteer their time?
It is fantastic to have employees who want to volunteer their free time back to the organization, but employees cannot volunteer to perform services like their normal job duties. However, the employee may donate services that are not the usual services that the employee performs as part of their job. For example, a non-exempt accountant at the organization can volunteer their time to make pancakes for the annual pancake breakfast. However, a non-exempt staff member on the development team employed to solicit donations for the organization should not be allowed to volunteer their time for a weekend phone-a-thon.
Are there special rules for volunteers at youth service organizations?
For youth services organizations, there are additional requirements and background checks for those volunteers. Section 18975 of the California Business and Professions Code, also known as Assembly Bill 506 or AB 506, requires that all regular volunteers of a youth service organization get a background check and complete training in child abuse and neglect identification and reporting. A “youth service organization” is a youth center, youth recreation program, or youth organization. “Regular volunteers” are volunteers who are 18 years or older and who have direct contact with, or supervision of, children for more than 16 hours per month or 32 hours per year through their volunteer work with the youth service organization. These regular volunteers must also complete a background check consistent with Penal Code section 11105.3 that will identify and exclude any persons with a history of child abuse. Since regular volunteers are based on the number of hours that the volunteer interacts with children, it may be helpful to have all volunteers who are expected to have contact with and supervise children to complete the background check and required training.
These are just a few of the common questions we get about volunteers. There are many others, and nonprofit organizations are encouraged to review and update their volunteer programs regularly to evaluate risks related to misclassification claims and compliance with changing laws and best practices with respect to nonprofits.