VOLUNTEERING AGREEMENT

ARTICLE 9 OF THE LAW OF UKRAINE “ON VOLUNTEERING”

WHAT IS A VOLUNTEERING AGREEMENT?

A written contract between a volunteer and an NGO or charitable organization, other non-profit organization or institution that engages him/her

WHY IS IT IMPORTANT TO DOCUMENT YOUR ACTIVITIES?

Clearly defined rights, responsibilities of the parties, volunteer’s tasks

Proper confirmation of the volunteer’s activities

Possibility to provide the volunteer with tax-free reimbursement of certain expenses

THE AGREEMENT IS OBLIGATORY IN THE BELOW CASES:

Providing assistance in certain areas (para. 7-8 of Part3 of the Law of Ukraine “On Volunteering”)

Reimbursing expenses related to the provision of volunteer assistance

If the volunteer wishes to conclude it

THE AGREEMENT MUST CONTAIN:

Description of the volunteer activity (task)

Rights and obligations of the parties

Period of volunteer activity

Responsibility for damages

Terms and conditions for terminating the agreement

Conditions and procedure for the reimbursement of expenses related to the provision of volunteer assistance, as defined in Part 1 of Article 11 of the Law of Ukraine “On Volunteering”

COMPONENTS OF THE VOLUNTEERING AGREEMENT

SUBJECT MATTER OF THE AGREEMENT

To what actions the agreement pertains, or what its intended result is

Areas (according to Art. 1 of the Law of Ukraine “On Volunteering”) in which the volunteer can work

Tasks that can be assigned to the volunteer within the scope of his/her activities (requirement of the Law, can be stipulated in a separate annex to the agreement)

RIGHTS AND OBLIGATIONS OF THE PARTIES

Mandatory component of the Agreement

The main ones are defined by Articles 5 and 7 of the Law of Ukraine “On Volunteering”

The organization and the volunteer can expand the legislative list by mutual agreement

PROCEDURE FOR THE REIMBURSEMENT OF EXPENSES:

Obligatory for expenses stipulated by part one of Art. 11 of the Law of Ukraine “On Volunteering” (specify which expenses can be reimbursed)

Even if there is a separate document in the organization, it is necessary to define the main provisions

Reimbursement limits in accordance with the RCMU No. 98 of February 02, 2011

TERMS OF THE AGREEMENT AND PROVISION OF VOLUNTEER ASSISTANCE

Period during which the assistance is provided

Validity of the agreement (termination upon a certain date and early termination)

Terms and conditions of agreement termination, which will not be contrary to the law

TERMS OF LIABILITY OF THE PARTIES

For improper fulfillment of their duties

Material and non-material damage

In case of force majeure

DETAILS OF THE PARTIES MUST BE INDICATED

WHAT EXPENSES CAN THE NON-PROFIT ORGANIZATION REIMBURSE THE VOLUNTEER AND HOW?

IMPORTANT!

In order to reimburse expenses related to the provision of volunteer assistance without being subject to personal income tax and military duty, a volunteering agreement must be concluded between the organization and the volunteer. The agreement should also specify the procedure and conditions for the reimbursement of such expenses.

IS REIMBURSEMENT OF VOLUNTEER EXPENSES BY A NON-PROFIT ORGANIZATION TAXABLE? THE LAW OF UKRAINE No. 2520-IX OF AUGUST 15, 2022 (ENTERED INTO FORCE ON 09/03/2022) AMENDED THE TAX CODE OF UKRAINE. FROM NOW ON, THE BELOW IS NOT INCLUDED IN TAXABLE INCOME:

funds or the cost of property (services) provided to a volunteer, in terms of expenses of a non-profit organization that engages volunteers in its activities, for medical examination and vaccination of a volunteer and other healthcare measures directly related to the provision of volunteer assistance by such a person (para. 165.1.64 of the TCU)

reimbursement by a non-profit organization to a volunteer of documented expenses associated with the provision of volunteer assistance, in accordance with Article 11 of the Law of Ukraine “On Volunteering” (para. 165.1.65 of the TCU)

WHAT TYPES OF EXPENSES CAN BE REIMBURSED IN ACCORDANCE WITH ARTICLE 11 OF THE LAW OF UKRAINE “ON VOLUNTEERING”?

Business trips within the territory of Ukraine and abroad within the limits of reimbursement of travel expenses, established for civil servants

Medical examination, vaccination and other healthcare measures directly related to the provision of volunteer assistance

Accommodation if the volunteer is traveling to another locality (duration of volunteering is more than 8 hours)

Travel (including luggage transportation) to the place of volunteering

Postal and telephone services related to the volunteer activity

Meals (duration of volunteering more than 4 hours per day)

Obtaining a visa

WHAT DOCUMENTS SHOULD A VOLUNTEER KEEP TO GET REIMBURSEMENT?

Transport tickets, baggage receipts (if any)

Bills received from hotels (motels)

Other settlement or payment documents if this category of expenses is eligible for reimbursement under Article 11 of the Law of Ukraine “On Volunteering”

REGULATORY DOCUMENTS ON THE BASIS OF WHICH THE AMOUNT (LIMITS) OF REIMBURSEMENTS IS ESTABLISHED: ORDER OF THE MINISTRY OF FINANCE OF UKRAINE DD. 03/13/1998 No. 59; RESOLUTION OF THE CMU DD. 02/02/2011 No. 98:

Maximum amount of per diem for meal expenses per volunteer: 300 UAH/day

Maximum accommodation expenses (residential premises rental): 900 UAH/day

THE PROCEDURE FOR DRAWING UP THE REPORT ON THE USE OF FUNDS ISSUED FOR A BUSINESS TRIP OR FUNDS TO BE ACCOUNTED FOR, APPROVED BY THE ORDER OF THE MINISTRY OF FINANCE OF UKRAINE DATED SEPTEMBER 28, 2015 No. 841.