Clarify Non-Employee Status
A volunteer agreement should avoid wage-like promises and make clear that the role is voluntary. Expense reimbursement, schedules, and duties should be written carefully so the relationship does not look like employment.
Free Volunteer Tool
US Volunteer Agreement & PolicyBuilder
Generate an FLSA-aligned volunteer agreement and internal governance policy for your 501(c)(3) nonprofit to protect your volunteers' non-employee status.
FLSA non-employee statusIRS expense guidanceBackground check guidanceNonprofit best practice
About the Volunteer Agreement & Policy Builder
Volunteers are essential to US nonprofits, but ambiguous documentation can inadvertently classify them as employees under the Fair Labor Standards Act (FLSA), exposing organizations to claims for back wages and penalties.
This free tool generates two distinct documents: a Volunteer Agreement and Release (a plain-English summary of expectations, non-employee status, and standard liability waivers) and a Volunteer Policy (the internal rules your nonprofit follows to recruit, support, and manage programs safely).
Maintaining FLSA Non-Employee Status
Under the FLSA, an individual cannot volunteer services to a for-profit private sector employer. For 501(c)(3) nonprofits, individuals may volunteer, but it must be freely given without anticipation of compensation or benefits.
- Explicit non-employee statements: We ensure the agreement clearly outlines that the volunteer relationship does not create employment or entitle the individual to wages or benefits.
- Stipends vs. Reimbursements: The policy distinguishes between actual out-of-pocket reimbursements (which are allowed) and regular stipends or flat allowances (which can jeopardize volunteer status).
- At-will terminology: "Dismissal" or "release from service" is used instead of "termination," which implies an employment relationship.
Liability Waivers and Background Checks
Standard waivers of liability protect the organization from typical risks. If your volunteers work with minors or vulnerable adults, the generated documents will include necessary consent language for background screening and a note about potential mandatory reporter obligations. Since these vary across states, a local legal review is always recommended.
Frequently Asked Questions
Can volunteers deduct their expenses on their taxes?
Yes, under IRS Publication 526, out-of-pocket, unreimbursed expenses directly related to volunteering for a qualified 501(c)(3) may be tax-deductible. The policy mentions this, but nonprofits should always advise volunteers to consult a tax professional.
Can we give volunteers gift cards as a thank you?
The IRS generally views gift cards or cash equivalents as taxable income, regardless of the amount. Providing them regularly or in significant amounts can risk changing a volunteer's status to an employee. Occasional, low-value tangible gifts (like a branded mug or t-shirt) are generally acceptable.
Are background checks legally required for volunteers?
There is no overarching federal requirement, but many states have laws mandating background checks for volunteers working with children (such as under CAPTA or state child welfare laws). Your insurance carrier or specific grant funders may also require them.
Built into FundRobin
US Nonprofit Volunteer Agreements for Safer Programmes
US nonprofits need volunteer documents that clarify non-employee status, reimbursable expenses, conduct expectations, liability, background checks, and mandatory reporting boundaries. FundRobin helps teams draft a practical starting point.
Address State-Level Risk
Background checks, mandatory reporter rules, liability waivers, and youth-serving requirements vary by state. A good policy names the review process and signals when local legal advice or insurance review is needed.
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FundRobin brings discovery, fit scoring, proposal drafting, documents, and follow-up into one customer workflow so teams can act on funding intelligence instead of copying it between tools.
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