Updated August 2026
Some of the most common questions NZPCA receives are:
Can we pay our coaches?
Can Committee Members be paid?
Can volunteers be reimbursed for their costs?
Can we give honorariums, koha or gifts?
Clubs need to approach these questions carefully and clearly distinguish between:
The key principle is that Pony Club is a volunteer-based organisation. Committee positions are voluntary governance roles and are not positions for personal financial gain.
What does the Constitution say?
Clause 6.8 of the Club Constitution provides that a person who is an employee of, or independent contractor to, the Club is disqualified from being elected or holding office as a Committee Member.
If an existing Committee Member becomes an employee or independent contractor of the Club, they are deemed to have vacated their Committee position.
Clause 11.3 allows Officers and Members to:
However, clause 11.3 does not override the Committee eligibility requirements in clause 6.8.
If an arrangement makes a Committee Member an employee or independent contractor of the Club, they cannot continue to hold office as a Committee Member.
Reimbursement versus payment
There is an important difference between reimbursement of genuine expenses and payment or reward for undertaking a role.
A Committee Member or volunteer may be reimbursed for actual and reasonable costs such as:
petrol or travel;
printing and photocopying;
resources and consumables;
rally or event expenses; and
other small incidental costs incurred on behalf of the Club.
The reimbursement should relate to genuine costs. It should not provide payment or reward for the person’s time, availability, responsibility or services.
Calling a payment an allowance, koha, honorarium or reimbursement does not determine what it is. The nature and purpose of the payment must be considered.
The practical test
A useful practical question is:
If the payment were broken down into an hourly rate, would it still look like fair and reasonable reimbursement of genuine costs, or would it begin to look like payment for undertaking a role?
For example:
Reimbursement for petrol and printing used for a rally may be reasonable.
A regular payment for someone’s time or for performing an ongoing role is more likely to be payment for work.
A payment calculated according to hours worked, events organised, lessons delivered or responsibilities undertaken is unlikely to be reimbursement of expenses.
Can coaches be paid?
Yes. Clubs may pay coaches where appropriate.
The arrangement should be:
clear and documented;
reasonable;
treated as an operational rather than governance arrangement; and
structured in accordance with applicable employment, tax and other legal obligations.
However, a paid coach who is an employee or independent contractor of the Club cannot also be a Committee Member.
A coach may serve on the Committee where their coaching is genuinely voluntary and they are not an employee or independent contractor of the Club. They may still be reimbursed for actual and reasonable expenses incurred.
Can Committee Members undertake paid work for the Club?
A Committee Member cannot remain on the Committee if the paid arrangement makes them an employee or independent contractor of the Club.
This may include paid work such as:
Declaring a conflict of interest and stepping out of discussions does not remove the disqualification under clause 6.8.
If a Committee Member accepts a role as an employee or independent contractor of the Club, they are deemed to have vacated their Committee position.
What does this mean for small Clubs?
Committee Members can still help with rallies, events, administration, working bees, grounds maintenance and other Club activities as volunteers.
They may also be reimbursed for actual and reasonable expenses they incur while doing this work.
The issue arises when a person receives payment or reward for undertaking work and the arrangement amounts to employment or independent contracting.
The size of the Club, the amount of money it handles or the amount paid does not change clause 6.8. However, the nature and formality of arrangements will vary considerably between Clubs.
Goods and arm’s-length transactions
Clause 11.3 permits Officers and Members to enter into genuine arm’s-length transactions with the Club for goods or services.
Any such transaction must be:
conducted on terms comparable with those available between unrelated parties;
reasonable and transparent;
properly approved and recorded; and
managed without the interested person influencing the decision.
A genuine arm’s-length purchase does not necessarily make someone an employee or independent contractor. However, where a person is personally undertaking paid work for the Club, the Club must consider whether the arrangement is employment or independent contracting.
Gifts, koha and honorariums
Clubs should be cautious about:
regular Christmas gifts;
annual payments to Committee Members;
general honorariums;
payments described as koha; and
payments intended to recognise time, responsibility or services.
The name given to a payment does not determine its status.
A genuine one-off token of recognition may be different from payment for work, but it should be reasonable, transparently approved and recorded in the minutes. It must not be used as a substitute for wages, contract payments or other remuneration.
Why does this matter?
If arrangements are not structured correctly, Clubs may unintentionally create issues relating to:
employment obligations;
minimum wage requirements;
holiday pay;
IRD and tax obligations;
employee versus contractor status;
conflicts of interest;
the personal-benefit provisions of the Constitution;
Committee eligibility under clause 6.8; and
public perception and transparency.
NZPCA guidance
Clubs should:
clearly separate Committee governance from paid employment or contracting;
keep reimbursements limited to actual and reasonable expenses;
document payment and reimbursement arrangements;
declare and manage conflicts of interest;
record decisions clearly in the minutes; and
ensure Committee Members remain focused on governance, leadership and oversight.
When the status of an arrangement is uncertain, the Club should obtain independent employment, tax, accounting or legal advice specific to its circumstances.
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