Legal aspects of voluntary work

Tax relief for voluntary work

As of January 1, 2021, the exercise leader allowance will increase from €2,400 to €3,000 per year and the lump sum for voluntary work from €720 to €840 per year. Up to this amount, the lump-sum reimbursement for financial expenses incurred by volunteers remains tax-free.

Federal Ministry of Finance

Lump-sum remuneration for members of the Management Board

The Ministry for Intergenerational Affairs, Family, Women and Integration of the State of North Rhine-Westphalia draws attention to the following: Non-profit associations may only pay lump-sum remuneration to members of the board of directors if this is regulated in the articles of association. The introduction of a tax-free allowance of 500 euros as part of the "Help for Helpers" law was the reason for many associations to pay lump-sum remuneration to board members. In a letter to the highest tax authorities of the federal states, the Federal Ministry of Finance points out that non-profit associations may first have to amend their articles of association before making such payments or may only reimburse expenses actually incurred. The articles of association had to be amended by the end of 2010. Furthermore, payments may not be "unreasonably high".

Act to further strengthen civic engagement

The "Act to Further Strengthen Civic Involvement", which came into force on January 1, 2007, creates additional relief for volunteers and makes the law on donations simpler and more practicable:

• New tax-free allowance of € 500 for voluntary additional income from non-profit, charitable and church organizations.
• The tax-free allowance for part-time trainers has been raised to EUR 2,400.
• For donations up to € 200, a cash deposit slip or a booking confirmation is sufficient proof.
• The maximum limit for the deduction of donations is raised to 20% of the total amount of income.
• Donations to foundations are deductible up to an amount of 1 million euros.
• The tax threshold for economic activities of non-profit corporations was raised to EUR 35,000.
• Liability for wrongly issued donation receipts was reduced from 40% to 30% of the donation amount for income and corporation tax purposes.

The experts for the taxation of associations at the Aachen City and Aachen District Tax Authorities will be happy to answer any questions you may have on the subject of taxes.

Exemption of non-profit associations from entertainment tax

Non-profit associations in Aachen will be exempt from entertainment tax. This was decided unanimously by the City of Aachen's finance committee. This means that events organized by non-profit associations - such as the royal balls of shooting clubs - will be treated in the same way as family and company celebrations and will therefore be exempt from entertainment tax.
The wish of many associations has thus been taken into account.
Although dance events organized by associations must still be registered with the Tax and Treasury Department, no entertainment tax will be assessed if the non-profit status is indicated and the corresponding corporation exemption certificate from the tax office is enclosed.