Reimbursing Youth Sports Volunteers: Best Practices, Considerations, and Risk Management

By Club Capital | May 29, 2025

Running a youth sports organization relies heavily on the dedication and commitment of volunteers. These individuals generously give their time and often spend their own money to support your program. While reimbursing volunteers seems straightforward, it requires careful planning to avoid financial, legal, and tax complications. This guide explores best practices for reimbursing volunteers while protecting your organization.

Why Volunteer Reimbursement Matters

Volunteers are the backbone of youth sports. They coach teams, organize events, manage equipment, and handle administrative tasks. Without proper reimbursement policies:

Volunteers may feel financially burdened and less likely to continue serving
Economic barriers might prevent qualified individuals from volunteering
Inconsistent reimbursement practices can create tension within your organization
Your program might face compliance issues with tax authorities

TLDR (Too Long Didn't Read)

Thoughtful volunteer reimbursement policies help sustain your youth sports program by ensuring that financial concerns don't become barriers to participation. By implementing clear guidelines, streamlined processes, and appropriate oversight, you can support your volunteers while protecting your organization's financial health and compliance status.

Remember that volunteers give generously of their time and expertise—your reimbursement practices should reflect appreciation for their contributions while maintaining appropriate financial controls.

This article is provided for informational purposes only and does not constitute legal, tax, or financial advice. Organizations should consult with appropriate professionals regarding specific situations.

Key Considerations for Volunteer Reimbursement

1. Distinguish Between Reimbursements and Compensation

Reimbursements cover actual expenses incurred while volunteering, while compensation is payment for services rendered. This distinction matters significantly for tax purposes.

Legitimate reimbursements are generally not taxable income for volunteers
Compensation (including stipends or honorariums) is taxable and requires tax reporting
Misclassifying compensation as reimbursements can create tax problems for both parties

2. Create a Clear Written Policy

A well-documented reimbursement policy protects everyone involved and should include:

Eligible expense categories (travel, equipment, training, etc.)
Required documentation (receipts, approval forms)
Submission deadlines and payment timelines
Maximum reimbursement amounts for different categories
Approval process and authorized approvers

3. Establish Proper Documentation Requirements

Documentation is your protection against both intentional misuse and honest mistakes:

Require detailed receipts for all expenses
Create standardized reimbursement request forms
Document the business purpose of each expense
Maintain records for at least 3-5 years (or as required by local regulations)
Implement approval workflows for expenses above certain thresholds

Best Practices for Youth Sports Organizations

Pre-Approve Major Expenses

Establish a pre-approval process for expenses above a certain threshold (e.g., $100). This prevents surprises and ensures expenses align with your organization's budget and priorities.

Set Clear Boundaries and Limits

Define specific categories and limits for reimbursements:

Mileage reimbursement rates (consider using IRS standard rates)
Equipment purchase allowances
Training and certification cost limits
Tournament and travel expense guidelines

Create a Simple, Efficient Process

Your reimbursement process should be volunteer-friendly:

Provide digital submission options
Establish reasonable processing timelines (e.g., 2-3 weeks)
Designate a specific person to handle reimbursement questions
Offer periodic training on reimbursement procedures

Consider Alternative Approaches

Direct reimbursement isn't the only option:

Procurement cards: Provide pre-loaded cards for authorized purchasers
Direct purchasing: Have the organization purchase items directly
Bulk purchasing: Buy commonly needed items in bulk to eliminate individual purchases
Expense accounts: Establish accounts with frequently used vendors

Managing Risks in Volunteer Reimbursement

Financial Risks

Budget overruns: Track reimbursements against budgeted amounts
Cash flow issues: Plan for reimbursement timing in your financial calendar
Fraud potential: Implement verification procedures while maintaining trust

Tax and Compliance Risks

IRS scrutiny: Ensure reimbursements meet accountable plan requirements
Excess benefits: Be cautious about reimbursements to board members that could violate nonprofit rules
1099 requirements: Monitor total payments to individuals that might trigger tax reporting

Relationship Risks

Perceived favoritism: Apply policies consistently across all volunteers
Volunteer retention: Balance fiscal responsibility with reasonable reimbursement
Transparency concerns: Communicate clearly about reimbursement policies and decisions

Implementation Roadmap

Assess current practices: Review how reimbursements are currently handled
Draft a policy: Create a comprehensive policy document
Board approval: Get formal approval from your board of directors
Volunteer communication: Clearly explain the policy to all volunteers
Regular review: Revisit the policy annually and adjust as needed

Special Considerations for Youth Sports

Background Check Reimbursements

Most organizations require background checks for volunteers working with youth. Consider:

Fully covering these costs since they're mandatory for child safety
Creating a streamlined process for background check reimbursements
Balancing privacy concerns with documentation requirements

Certification and Training Costs

Coaching certifications and safety training benefit your entire program:

Consider full reimbursement for required certifications
Establish partial reimbursement for optional but beneficial training
Create clear guidelines about which certifications qualify

Tournament and Travel Considerations

Team travel presents unique challenges:

Define policies for overnight accommodations
Establish meal allowance rates or per diems
Create clear guidelines for transportation reimbursement
Consider equity issues when some teams travel more than others

Sample Reimbursement Policy Language

"Volunteers may request reimbursement for reasonable expenses incurred while performing authorized duties for [Organization Name]. All reimbursement requests must include itemized receipts, be submitted on the official reimbursement form within 30 days of the expense, and be approved by the appropriate program director. Reimbursements will be processed within 14 days of approval. The organization reserves the right to deny reimbursement for expenses that exceed pre-approved limits or fail to meet documentation requirements."