What is the allowance for voluntary service?

The voluntary work allowance allows you to receive income from part-time activities in charitable, benevolent, or church-related areas up to 840 Euro per year tax-free (§ 3 No. 26a EStG).

It applies particularly to organisational or administrative activities in clubs, organisations, or public institutions.

Requirements

• Part-time basis: Maximum one-third of the working hours of a full-time job
• Charitable or church purpose: Activity in a tax-privileged organisation
• No double funding: No parallel tax exemption under § 3 No. 12 EStG

Distinction from the trainer allowance

The trainer allowance (§ 3 No. 26 EStG) amounts to 3.000 Euro annually and applies to educational and supervisory activities (e.g. trainers, instructors).

The voluntary work allowance, on the other hand, applies to organisational activities, e.g. administration or accounting.

Both allowances cannot be used simultaneously for the same activity.

Business expenses

Business expenses related to voluntary work are only deductible if they exceed the allowance of 840 Euro.

Special case: Vaccination and test centres (2020–2023)

• Organisation & administration: Voluntary work allowance (up to 840 Euro)
• Conducting tests/vaccinations: Trainer allowance (up to 3.000 Euro)

Applies only to charitable or public bodies

The tax exemption applies only to activities for:

• Charitable organisations or clubs
• Legal entities under public law (e.g. municipalities, universities)

Not applicable for activities in private institutions such as doctors' surgeries or private test centres.

BFH case law

The Federal Fiscal Court ruled on 08.05.2024 (VIII R 9/21) that activities for legal entities under public law are required.

However, this interpretation is to be restricted by a future amendment to the law.