Volunteer Agreement: What To Review Before Signing

For many US nonprofits, community organizations, and even some socially minded startups, volunteers are essential to achieving their mission. Volunteers can bring new energy, skills, and resources to your cause. However, bringing on volunteers is not as simple as just saying yes to help. Many founders and operators mistakenly assume volunteers are like informal helpers, or they use a generic agreement without considering legal or practical risks. This can lead to confusion, disputes, or even IRS or state compliance problems.

This guide explains what a volunteer agreement is, what to review before signing, and how federal and state rules can affect your obligations. We will cover practical examples, checklists, and common mistakes to help you avoid problems and set clear expectations with your volunteers.

What Is a Volunteer Agreement?

A volunteer agreement is a written document that outlines the expectations, rights, and responsibilities of both the organization and the volunteer. Unlike an employment contract, a volunteer agreement is not intended to create a paid employment relationship. Instead, it clarifies the volunteer's role, the tasks they will perform, the time commitment, and any policies or procedures they must follow.

For nonprofits and tax-exempt organizations, a volunteer agreement can help demonstrate compliance with IRS rules and show that your organization is operating in line with its stated mission. For other organizations, a clear agreement helps prevent misunderstandings and reduces the risk of legal disputes. A well-drafted agreement also helps volunteers understand what is expected of them and what they can expect in return.

There is no federal law that requires a written volunteer agreement, but having one is considered best practice. Some states or localities may have additional requirements, especially if your organization works with children, vulnerable adults, or handles sensitive information. For example, California and New York have specific rules for background checks and working with minors that may need to be referenced in your agreement.

Volunteer agreements are also useful for insurance purposes and can help clarify liability issues if something goes wrong. In some cases, funders or grant providers may require your organization to have written volunteer agreements as a condition of funding.

Key Elements to Check in a Volunteer Agreement

Before you sign or ask someone to sign a volunteer agreement, review the following essential elements:

• Role and Scope of Work: The agreement should clearly describe what the volunteer will do, where, and when. For example, "assist with event setup every Saturday from 9am to 12pm at the community center." Avoid vague descriptions like "help as needed." This clarity helps prevent misunderstandings and ensures the volunteer knows their responsibilities.
• Time Commitment: Specify the expected hours, days, or duration of the volunteer service. Is it a one-time event, a recurring commitment, or an ongoing role? For example, "volunteer will serve two shifts per week for a minimum of three months."
• Supervision and Reporting: Identify who the volunteer reports to and how performance or attendance will be tracked. For example, "volunteers will report to the Program Manager and must sign in at the start of each shift."
• Training and Policies: Outline any required training, background checks, or policies the volunteer must follow, such as confidentiality, safety, or code of conduct rules. For example, "volunteers must complete a two-hour orientation and pass a background check as required by state law."
• Reimbursement and Expenses: Clarify whether the volunteer will be reimbursed for expenses (like travel or supplies) and how to submit receipts. Make it clear that volunteers are not paid wages. For example, "volunteers may submit mileage expenses for reimbursement at the current IRS rate."
• Termination and Exit: Explain how either party can end the volunteer relationship and any notice required. For example, "either party may terminate this agreement with one week's written notice."
• Liability and Insurance: State whether the organization provides insurance for volunteers and what risks the volunteer assumes. Some agreements include a waiver of liability or a release form. For example, "the organization maintains general liability insurance, but volunteers are responsible for their own health insurance."
• Intellectual Property: If volunteers create materials, content, or inventions, clarify who owns the rights. For example, "any materials created by the volunteer in the course of their service are the property of the organization."
• Confidentiality: If volunteers will access sensitive information, include a confidentiality clause. For example, "volunteers must not disclose any personal information about clients to third parties."

Use a checklist to ensure your agreement covers these points. Missing or unclear terms are a common source of disputes. For example, if a volunteer expects to be reimbursed for travel but the agreement is silent, this can lead to frustration or even a claim for unpaid wages.

Practical Example: A nonprofit animal shelter brings on volunteers to help with animal care. The agreement should specify tasks (feeding, cleaning, walking), required training (animal handling safety), supervision (reporting to the shelter manager), and a waiver of liability for animal-related injuries. It should also clarify that volunteers are not entitled to pay or future employment.

Federal and State Law Issues for Volunteers

At the federal level, the main legal concern is ensuring volunteers are not treated as employees under the Fair Labor Standards Act (FLSA). The FLSA generally allows true volunteers to work for nonprofits, government agencies, and certain community organizations without pay, as long as:

• The volunteer does not expect compensation.
• The work is genuinely voluntary (not coerced or required).
• The volunteer is not displacing paid employees or doing work that would otherwise be paid.

For-profit businesses face much stricter rules. The Department of Labor does not allow for-profit businesses to use unpaid volunteers for regular business operations. There are very limited exceptions, such as internships that meet strict criteria. Misclassifying workers as volunteers can lead to wage and hour claims, tax penalties, and lawsuits. For example, a startup cannot use "volunteers" to do sales or coding work that would normally be paid. If in doubt, seek legal advice before bringing on unpaid help in a for-profit setting.

State laws can add additional requirements. For example:

• California: Requires background checks for volunteers working with minors and has strict rules about what can be considered volunteer work. The state also has specific insurance requirements for certain volunteer activities.
• New York: Mandates background checks for volunteers working with children and vulnerable adults. Some organizations must register with the state before accepting volunteers.
• Texas: Does not require written volunteer agreements, but recommends them for organizations working with at-risk populations. Some cities may have their own requirements.
• Florida: Requires certain organizations to carry volunteer accident insurance if volunteers are driving on behalf of the organization.

Always check your state's rules, especially if your volunteers will be driving, handling money, or working with sensitive populations. If your organization operates in multiple states, you may need to tailor your volunteer agreement to comply with each state's requirements.

IRS rules for 501(c)(3) organizations also require that volunteers are not paid more than reasonable expense reimbursements, and that their work supports the organization's exempt purpose. Excessive payments or benefits to volunteers can jeopardize your tax-exempt status. For example, giving volunteers large "stipends" or valuable perks could be seen as disguised compensation.

Practical Example: A nonprofit in California wants to use volunteers for a youth mentoring program. The organization must run background checks, provide training on mandated reporting, and comply with state privacy laws. The volunteer agreement should reference these requirements and include a code of conduct specific to working with minors.

Common Mistakes and How to Avoid Them

Many organizations make mistakes with volunteer agreements that can lead to legal or operational problems. Here are some of the most common issues and how to avoid them:

• Using an Employee Contract Template: Volunteer agreements should not look like employment contracts. Do not include promises of pay, benefits, or job security. For example, avoid language like "volunteer will receive a bonus" or "position may lead to paid employment."
• Failing to Define the Volunteer Role: Vague or open-ended descriptions can lead to misunderstandings or volunteers taking on tasks they are not qualified for. For example, "help with whatever is needed" does not set clear expectations.
• Ignoring State or Local Requirements: For example, failing to run required background checks or register with the state charity regulator. This is especially risky for organizations working with children, the elderly, or people with disabilities.
• Not Addressing Liability: If your agreement does not address insurance, waivers, or risk, you may be exposed to claims if a volunteer is injured or causes harm. For example, if a volunteer is injured while lifting heavy boxes, your organization could be liable if risks were not disclosed.
• Overpromising: Avoid language that implies a guarantee of future employment, payment, or benefits. For example, "outstanding volunteers will be considered for staff positions" can create legal risk.
• Not Updating Agreements: Laws and organizational policies change. Review your volunteer agreements regularly and update as needed. For example, if your state introduces new background check requirements, your agreement should reflect this.
• Not Getting Written Consent: Relying on verbal agreements or informal arrangements can lead to disputes. Always get a signed agreement, even for short-term or one-off volunteers.

Practical Example: A food pantry in Texas had volunteers driving to pick up donations without a clear agreement. When a volunteer was involved in a car accident, there was confusion about insurance coverage and liability. A clear agreement with insurance and driving policies could have prevented this issue.

Checklist: Reviewing a Volunteer Agreement

Before signing or issuing a volunteer agreement, use this checklist to make sure you have covered the essentials:

• Does the agreement clearly state the volunteer's role, tasks, and time commitment?
• Is it clear that the role is unpaid and voluntary?
• Are supervision, reporting, and training requirements spelled out?
• Does it address reimbursement of expenses, if any?
• Are confidentiality and intellectual property issues covered?
• Is there a clear process for ending the volunteer relationship?
• Does it address liability, waivers, and insurance coverage?
• Have you checked for any state or local requirements (such as background checks, registration, or insurance)?
• Has the agreement been reviewed by someone familiar with nonprofit or employment law?

Practical Example: A community garden in New York brings on volunteers to help with planting and maintenance. The agreement should specify tasks (planting, weeding, watering), required safety training, and a waiver of liability for injuries. It should also clarify that volunteers are not entitled to pay, and include a confidentiality clause if volunteers will access donor information.

Another Example: A nonprofit theater company in Illinois uses volunteers for ushering and backstage help. The agreement should outline expected shifts, dress code, supervision, and a process for reporting safety concerns. If volunteers will have access to ticket sales or cash, include policies for handling money and reporting discrepancies.

Tip: Keep copies of all signed agreements and update them annually or when roles or laws change. If your organization uses online volunteer sign-ups, make sure the agreement is clearly presented and requires an electronic signature.

FAQs

Do I need a volunteer agreement for every volunteer?

While not legally required in most states, having a written volunteer agreement for every volunteer is considered best practice. It helps set clear expectations, protects your organization, and can be useful if there is ever a dispute. Some states or funders may require written agreements for certain types of volunteer work, especially with vulnerable populations. For example, California requires written agreements for volunteers working with minors in many contexts.

Can for-profit businesses use volunteer agreements?

Generally, for-profit businesses cannot use unpaid volunteers for regular business operations. The Department of Labor closely scrutinizes these arrangements. There are limited exceptions, such as internships that meet strict criteria. If you are a for-profit business, consult a legal professional before using volunteers to avoid wage and hour risks. For example, a tech startup cannot use unpaid "volunteers" to do coding or marketing work.

What is the difference between a volunteer and an employee?

Volunteers provide services without expectation of pay, benefits, or future employment. Employees are paid, covered by wage and hour laws, and entitled to certain benefits. Misclassifying an employee as a volunteer can lead to legal and tax problems. The main factors are compensation, control, and the nature of the work. For example, if you set strict schedules, direct daily tasks, and provide regular pay, the person is likely an employee, not a volunteer.

Should volunteers sign a waiver or release of liability?

Many organizations include a waiver or release of liability in their volunteer agreements, especially if the work involves physical activity or risk. While these waivers can provide some protection, they are not always enforceable in every state or situation. It is important to draft them carefully and ensure volunteers understand what they are signing. For example, some states limit waivers for gross negligence or willful misconduct.

Are volunteers covered by workers' compensation insurance?

In most states, volunteers are not covered by standard workers' compensation insurance, but some states allow nonprofits to opt in or purchase special policies. Check your state's rules and consider additional accident or liability insurance for volunteers. For example, Florida requires certain organizations to carry volunteer accident insurance if volunteers are driving as part of their role.

Key Takeaways

• A volunteer agreement is a practical tool to set clear expectations and protect both the organization and the volunteer.
• Review the agreement for role clarity, time commitment, supervision, reimbursement, liability, and compliance with federal and state laws.
• Do not use employment contract templates or promise pay or benefits to volunteers.
• Check state and IRS rules, especially if your volunteers work with children, handle sensitive data, or receive reimbursements.
• Regularly review and update your volunteer agreements as laws and policies change.
• Keep records of all signed agreements and ensure volunteers understand their rights and responsibilities.

If you are setting up a volunteer program or reviewing your volunteer agreements, it can help to speak with a legal professional familiar with nonprofit and employment law. For educational support or to discuss your organization's needs, contact our team at (888) 449-8437 or team@sprintlaw.com. Where legal services are required, they are delivered by licensed lawyers at trusted US law firms through the Sprintlaw platform.