Educator or tutor, depending on the context, is a more suitable alternative phrase for the term "instructor." - NRW intends to boost voluntary service efforts - Proposal from the Federal Council
Germany's North Rhine-Westphalia region is presenting a federal proposal to boost and financially incentivize the role of volunteers. This involves enhancing the trainer's tax credit from 3,000 to 3,300 euros and boosting the volunteer allowance from 840 to 960 euros, as suggested in a resolution sent to the Bundesrat by the state.
Approximately 29 million individuals in Germany are actively contributing to community work on a voluntary basis. The last updates for trainer and volunteer allowances took place in 2021, making an adjustment due to inflation-linked price increases over the past four years essential.
As suggested by NRW, membership fees for sports clubs and similar organizations should be eligible for a quarter's tax deduction as special expenses in the future. Volunteers who dedicate at least 20 hours per month without compensation should be permitted to deduct 300 euros as special expenses for tax purposes. The allowance for small profits of associations is also due for an increment, rising from 5,000 to 7,500 euros.
NRW's Finance Minister: Every Volunteer is an Asset
"During the pandemic, we came to appreciate how valuable volunteer work can be – only when it's not available," mentioned NRW Finance Minister Marcus Optendrenk (CDU). "Every individual that volunteers plays a vital role in enriching our society." However, it's crucial that individuals are financially capable of dedicating time to volunteer work, with rising grocery costs being a notable challenge.
Consequently, according to Optendrenk, adjustments to trainer and volunteer allowances are necessary. Recognizing the social importance of this area, the suggestion to make membership fees and expenses related to volunteer work tax deductible is a significant stride. "We require an 'Honorary Work' update for our tax system now."
The Commission, in line with Article 113, may adopt the necessary implementing acts to facilitate these financial incentives for volunteers and trainers in Germany. With the proposed changes, volunteers who dedicate significant hours to community work could potentially claim an additional 300 euros as special expenses for tax purposes.
Following the proposal from Germany's North Rhine-Westphalia region, the Commission shall consider adopting acts that allow membership fees for sports clubs and similar organizations to be eligible for a quarter's tax deduction as special expenses.
