Committee Payments, Honorariums, and Reimbursements

Frequently Asked Questions

One of the most common questions NZPCA receives is:

• Can we pay our coaches?
• Can we pay committee members?
• Can we reimburse people for their time or costs?
• Can we give honorariums or gifts?

This is an area that Clubs and Regions need to approach carefully.

Under the new constitution framework, NZPCA has intentionally been very clear around regular payments and personal financial benefit.

The key principle is that Pony Club is a volunteer-based organisation, and governance roles should remain focused on governance, not personal financial gain.

The key difference: reimbursement vs payment

There is an important difference between:

• Genuine cost reimbursement or cost recovery
  and

• Regular payment or financial benefit

A small amount for genuine expenses such as:

• Petrol
• Printing
• Resources
• Rally consumables
• Small incidental costs
• A modest koha

may be reasonable as cost reimbursement.

This is very different from regular payments that resemble wages, contracted employment, or personal financial benefit.

The practical test

A good practical question to ask is:

If this payment were broken down into an hourly rate, would it still look like a fair and reasonable reimbursement for genuine costs, or would it start to look like payment for a role?

That is often the real crux of the matter.

For example:

• A small reimbursement to cover petrol and printing for a rally may be reasonable.
• A regular weekly payment for performing a governance role may raise concerns.

Why does this matter

If payments are not structured carefully, Clubs and Regions may unintentionally create issues relating to:

• Employment obligations
• Minimum wage requirements
• Holiday pay
• IRD and tax obligations
• Contractor versus employee status
• Conflict of interest concerns
• Personal financial benefit provisions under constitutions
• Public perception and transparency

Can coaches be paid?

Yes, coaching services may be paid where appropriate.

However:

• The arrangement should be clear and documented.
• The payment should be reasonable.
• The role should be operational, not governance based.
• Conflicts of interest must be declared and managed.

Can committee members be paid?

This is where extra caution is needed.

Committee members are governance positions. NZPCA strongly recommends avoiding regular personal financial benefit to committee members wherever possible.

If a committee member is providing a separate operational service, for example:

• Bookkeeping
• Cleaning
• Contract administration
• Grounds maintenance
• Event services

then:

• The conflict of interest must be declared.
• The person must step out of discussion and voting.
• The arrangement should be documented.
• The payment should be reasonable and transparent.

Officers and governance roles

Positions such as:

• President
• Secretary
• Treasurer

should generally not receive ongoing personal financial benefit connected to their governance role.

For example:

• The Treasurer should not also be the paid bookkeeper.
• Governance oversight and paid operational work should be separated wherever possible.

Gifts and honorariums

Clubs should be cautious around:

• Regular Christmas gifts
• Annual committee payments
• General honorariums without clear purpose

Recognition for significant service may still be appropriate, but it should:

• Be clearly approved
• Be reasonable
• Be transparent
• Be properly recorded in minutes

NZPCA's advice is to remain conservative and cautious in this area.

Where possible:

• Separate governance from paid operational roles
• Keep reimbursements reasonable and documented
• Declare and manage conflicts of interest
• Record decisions clearly in minutes
• Focus committees on governance, leadership, and oversight

If in doubt, Clubs and Regions should seek independent accounting, employment, or legal advice specific to their situation.