Expense reimbursement policy
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Expense reimbursement policy

[ORGANIZATION NAME]

Adopted by the Board of Directors on [DATE]

1. Purpose

This policy explains how [ORGANIZATION NAME] reimburses employees and volunteers for reasonable expenses they pay while carrying out the organization's work. It is intended to meet the requirements of an accountable plan as described by the IRS.

2. Who this policy covers

This policy covers employees, board members and volunteers of [ORGANIZATION NAME] who pay approved expenses on its behalf.

3. What we reimburse

We reimburse expenses that are:

- reasonable in amount,
- paid while doing work for [ORGANIZATION NAME], and
- approved in advance when required by section 5.

Examples include supplies bought for programs, postage, approved travel, registration for approved training, and mileage for approved trips.

4. What we do not reimburse

We do not reimburse personal expenses, commuting between home and a regular place of work, fines or penalties, alcohol, [OTHER ITEMS], or any expense without a receipt except as allowed in section 6.

5. Approval before spending

Any single expense over $[AMOUNT] needs approval from [APPROVER ROLE] before it is spent. Travel away from home always needs approval in advance. No one may approve their own expenses. Expenses of the [EXECUTIVE DIRECTOR / CHAIR] are approved by the [TREASURER / CHAIR].

6. How to claim

1. Complete the expense claim form, listing the date, amount and purpose of each expense.
2. Attach an itemized receipt for each expense. If a receipt is lost, attach a signed note explaining the expense, the amount and why there is no receipt. Missing-receipt notes are allowed for expenses up to $[AMOUNT] only.
3. Submit the claim to [APPROVER ROLE] within 60 days of paying the expense.
4. Claims submitted later than 60 days may be refused.

7. Mileage

When a person uses their own vehicle for approved [ORGANIZATION NAME] travel, we reimburse at the IRS standard mileage rate for business use in effect on the date of travel, published at irs.gov. [OPTIONAL: VOLUNTEERS ARE REIMBURSED AT THE SAME RATE / VOLUNTEERS ARE NOT REIMBURSED FOR MILEAGE.] Parking fees and tolls are reimbursed with receipts. The claim must include a mileage log showing the date, starting point, destination, purpose and miles driven.

8. Advances

[ORGANIZATION NAME] may advance money for an approved expense, no earlier than 30 days before the expense is expected. Within 60 days of the expense, the person must submit receipts for the advance. Any money not spent must be returned within 120 days of the expense.

9. Payment

Approved claims are paid by [CHECK / DIRECT DEPOSIT] within [NUMBER] days of approval. Reimbursements are recorded in the organization's books as the type of expense they cover.

10. Amounts not substantiated or returned

If expenses are not substantiated, or excess advances are not returned, within the periods in this policy, [ORGANIZATION NAME] will treat the unsupported amount as required by IRS rules. For employees, this may mean reporting it as wages.

11. Records

The [TREASURER / BOOKKEEPER] keeps claim forms, receipts and mileage logs as required by our document retention policy.

12. Review

The Board reviews this policy every [NUMBER] year(s).

Approved by: [NAME], [TITLE] Date: [DATE]