ZEWO
Question
Within our committee, there are very different opinions as to how expenses are to be reimbursed and whether committee members should receive compensation. What is the right approach?
Answer
In many associations, expense regulations and committee compensation are an ongoing topic and are often even a permanent source of conflict that is never made an issue. From a legal standpoint, there are no exact regulations on this issue and associations handle the topic of compensation very differently. Here are a couple of points of reference:
It should be a matter of course that compensation is provided for expenses that are actually incurred.
The expense regulations and the compensation provided must be adjusted in line with the association's financial situation. This expenditure should be included in the budget.
Generous lump sums and compensation payments may exhibit the character of payments that are subject to tax and other duties.
For associations that are exempted from tax and those that bear the ZEWO quality seal, more stringent requirements apply.
It is highly recommended to discuss the compensation of expenses in detail within the committee and to record the regulations decided upon in writing. See in this regard the work aid "Expenses, expense regulations, compensation".
