German Law Expands Volunteer Liability Protection from 2026

Effective January 1, 2026, German law has significantly expanded liability protection for individuals serving as volunteers in associations. The revised regulation raises the annual compensation threshold to 3,300 euros, meaning more board members, trainers, and other functionaries will benefit from limited personal liability. This legislative change is intended to strengthen volunteerism and facilitate the recruitment of dedicated individuals.

The reform specifically targets volunteers receiving compensation up to the new 3,300 euro annual limit. Previously, this protection applied only to those receiving no compensation or a maximum of 840 euros annually. The increased limit now aligns with the higher tax-free allowance for trainers. Under the new rules, volunteers are generally liable to the association only for damages caused intentionally or through gross negligence.

While this reform aims to make it easier to attract volunteers, it shifts some economic risk onto the associations themselves. Managing directors should critically review their current organizational and risk management structures. Ensuring adequate insurance coverage, including liability and Directors & Officers (D&O) insurance, remains crucial, as personal liability towards third parties and tax liability may still apply.

BDO's experts advise associations on the implications of this reform and assist in assessing risks. It is recommended to review statutes, clarify responsibilities, and ensure insurance policies align with the actual risk profile. Robust risk management, clear accountability, and control mechanisms are now more important than ever.