This resource was developed by Volunteer Toronto.
Purpose
To clarify a consistent approach to providing honorariums as a specific gesture of thanks when voluntary services are provided and would not require a fee.
Policy Statement
Volunteering is unpaid labour, where both the volunteer and the organization benefit from the volunteer’s contributions. In specific circumstances, (Insert Organization Name) offers honorariums to individuals providing their services voluntarily. These are one-time payments that do not directly reflect the value of labour provided (i.e., number of hours volunteered).
Definitions
“Honorarium”: Canada Revenue Agency defines this as a voluntary payment made to a person for services for which fees are not legally or traditionally required. The limit for an honorarium before becoming taxable employment income is $500 for an individual from the same organization in a calendar year.
“Reimbursements”: These are payments to cover specific costs, such as mileage or out-of-pocket expenses. Reimbursements are NOT honoraria and are not taxable.
Responsibilities
Staff are responsible for understanding the circumstances where volunteers may receive honorariums. They are not responsible for determining these circumstances, nor providing the honorarium directly. Opportunities or voluntary services where honorariums are provided will be clearly communicated by staff.
Senior leadership are responsible for defining and reviewing the specific circumstances where an honorarium will be provided. They will also determine and implement the process for paying honorariums.
Procedures
Honorariums are a “thank-you” gesture in exchange for services for which fees are not usually required. They are a recognition of the unpaid labour of specialized or specific support being provided by an individual.
The following are specific circumstances where an honorarium may be provided:
- Guest speaker, lecturer, or workshop facilitator
- Guest leader for educational or outreach event
- One-time payment to a volunteer for specialized assistance with set-up/support at special events
An honorarium is a predetermined amount not exceeding $500, and is not based on an agreed-upon amount between the individual providing services and the organization. An agreed-upon amount is instead a contractual relationship requiring payment. An honorarium cannot be based on a unit of measurement such as hours volunteered – it is a flat amount and is not compensation for work performed.
