Federal government strengthens voluntary work and associations: tax improvements from 2026

In December, the Federal Council approved the Tax Amendment Act for Voluntary Work. This means that important tax and legal improvements for volunteers and associations have been agreed. The main changes came into force on January 1, 2026.

According to the City of Offenbach am Main's volunteering officer, Manuel Dieter, the annual lump sum for training managers will increase from the previous 3,000 euros to 3,300 euros and the lump sum for volunteers from 840 euros to 960 euros. Income up to these amounts remains tax-free.

The exercise leader allowance can still be used not only for traditional part-time activities in sport. The allowance also applies, among other things, to part-time activities as a trainer, educator, supervisor or for comparable educational tasks.

The honorary allowance benefits, for example, club board members, treasurers, grounds or equipment managers, people in cleaning or driving services and honorary referees in the amateur sector.

The lump-sum allowances for trainers and volunteers relate to one calendar year in each case. The allowances can be combined for different activities - for example as a trainer and as a board member at the same time. However, only one of the allowances is applicable for one and the same activity. A case-by-case assessment is recommended.

Another important change concerns liability protection for volunteers. Volunteers are generally only liable to a limited extent for damage they cause as part of their work for the association - for example at events, training sessions or organizational tasks. This special liability protection previously only applied if the annual remuneration for the voluntary work did not exceed 840 euros. From January 1, 2026, this limit will be raised significantly: In future, the liability privilege will also apply if volunteers receive up to €3,300 per year. This means that volunteers will generally not be personally liable for simple negligence, even if they receive a higher expense allowance, but the association or its insurance company will be liable.

The law also makes things easier for associations. Many non-profit associations generate additional income alongside their non-material activities, for example through club parties, the sale of food and drinks, raffles or the operation of a clubhouse. These so-called commercial business operations are generally subject to tax. The exemption limit for such income has now been raised from the previous 45,000 euros to 50,000 euros per year. If the income is below this limit, clubs do not have to pay corporation and trade tax. This leaves the associations with more money for their charitable work and reduces the administrative tax burden.

In addition, smaller associations are significantly relieved: In future, associations with total annual income of up to €100,000 will no longer have to prove that they use their funds promptly - usually within two years - for their statutory purposes. This allows them to save income for longer, for example for larger purchases, renovations or future projects.

The law also makes it easier for smaller associations to keep accounts. As long as their income from economic activities is less than 50,000 euros in total, the income no longer has to be divided into different tax "spheres" in a complicated manner.

Another new feature is that e-sports is now recognized as a charitable purpose. This means that in future, e-sports clubs will also be able to operate on a tax-privileged basis, as teamwork, responsiveness and social skills are promoted.

The legal clarification regarding the operation of photovoltaic systems is also positive for many clubs. Some clubs operate or are planning solar systems, for example on clubhouses, sports halls or other club-owned buildings. Previously, there was often uncertainty as to whether feeding electricity into the grid and the resulting income could jeopardize the non-profit status of the association. In future, it will be clearly regulated that the installation and operation of photovoltaic systems is not detrimental to charitable status. Associations can thus generate solar power and use it themselves without risking their tax benefits. However, feeding electricity that is not consumed by the association itself into the public grid is still considered an economic activity. As before, it can constitute a taxable business operation if the combined income from all taxable activities exceeds the exemption limit of EUR 50,000 per year. In this case, corporation and trade tax is payable. Overall, however, associations are given more legal certainty and planning leeway: they can invest in photovoltaics, reduce their energy costs and make a contribution to climate protection without their non-profit status alone being called into question.