Expense Management for Nonprofits: Simplify Reimbursements & Track Volunteer Spend

Every pound counts, yet for many UK nonprofits, expense management is quietly draining both budgets and goodwill. 

Volunteers are covering costs out of pocket and waiting weeks to be repaid. Finance teams are buried in spreadsheets, chasing missing receipts.

And leadership teams are left guessing where volunteer spend is really going until year-end reports reveal the gaps. 

If that sounds familiar, it’s time to simplify. 

This guide walks through how UK charities can streamline volunteer reimbursements, track expenses in real time, and build the financial transparency donors, auditors, and volunteers expect. 

The Hidden Cost of Volunteer Reimbursements for UK Charities 

Volunteer expenses can seem small (a train ticket, a coffee, a packet of stationery), but for UK charities, they can add up to major headaches.  

When expense reimbursements are slow, confusing or inconsistent, it impacts volunteering engagement, drains resources and eats into time better spent on mission-critical work. 

Volunteering in a cost-of-living crisis 

With costs rising, more volunteers are hesitant to pay out of pocket. NCVO research shows 14% of people who haven’t volunteered cite fear of not being reimbursed as a barrier, increasing to 20% among younger adults. 

Even among current volunteers, only 55% say their organisation reimburses expenses, and 16% aren’t sure. That uncertainty alone is enough to deter future volunteers and lower retention. 

When volunteers worry they’ll be left out of pocket, their motivation dips, and charities risk losing both time and trust. 

The admin burden on charity finance teams 

The challenge isn’t only on the volunteer side. Many charities still rely on spreadsheets, paper receipts and long email chains to manage expenses. 

That means: 

• Hours lost to repetitive admin 

• Slow reimbursements that frustrate volunteers 

• Fragmented records that make reporting and audits harder 

It’s not unusual for a finance officer to spend more time processing a £5 train fare than the expense itself.

Over time, that inefficiency costs charities valuable staff hours and goodwill. 

Why getting reimbursements right protects your charity 

Reimbursing volunteers quickly and fairly is essential for equality and compliance.  

UK guidance states volunteers “may get money to cover expenses” such as travel, meals, or equipment. But poor handling can backfire: 

• Over-reimbursement risks HMRC classing volunteers as workers. 

• Slow repayments can exclude those unable to front costs. 

A smooth reimbursement process protects fairness, compliance and your reputation. 

How to Simplify Volunteer Reimbursements: 5 Steps That Work 

You don’t need a huge finance team to make expenses easier – just a few smart changes. 

Step 1: Set clear volunteer expense policies 

Put everything in writing: what can be claimed, how to claim, and how approvals work. 

For instance, volunteers might claim mileage at HMRC’s approved rate, public transport fares, or meals during long shifts, as long as they’re actual out-of-pocket costs with receipts. 

Share the policy in volunteer inductions, keep it visible, and review it annually. 

Step 2: Make the claims process simple 

If claiming expenses means juggling forms and waiting weeks for repayment, volunteers won’t bother. 

Instead: 

• Offer a short digital form or a dedicated email address for receipts. 

• Set clear expectations (e.g. “Submit by Friday, reimbursed by next Friday.”) 

• For frequent volunteers, consider prepaid expense cards or vouchers to avoid out-of-pocket costs altogether. 

Step 3: Use digital tools to cut paperwork and save time 

Digital expense systems make the process faster for everyone. Volunteers can snap a photo of a receipt, submit it instantly, and get reimbursed within days. 

Tools like ExpenseIn let you set policy rules upfront, flagging missing receipts, enforcing limits, and creating a full audit trail automatically.

That means less chasing and more accuracy. 

Step 4: Reimburse quickly to keep volunteers engaged 

When volunteers pay upfront, every day they wait impacts morale. 

Try aiming for turnaround like “submit this week, paid by next week” (or sooner). Use online bank transfers rather than cheques or only monthly pay runs where possible. 

Also consider setting an internal target such as 95% of claims reimbursed within 5 business days.

It keeps your team accountable and sends a message that you value volunteer time as much as money. 

Step 5: Train, communicate and keep expense practices visible 

During onboarding, take a couple of minutes to walk volunteers through the claim process and let them know that yes, you expect them to claim.  

Menial costs add up, and volunteers often shy away from claiming because they don’t want to be a burden. So, let them know: the budget is there for this. 

Also, make sure finance or volunteer-manager teams understand the importance of consistent, speedy approvals. If an admin bottleneck slows everything down, it undermines your system.  

When you roll out new tools or policies, share a short guide or host a quick drop-in session. The more visible your process, the smoother it runs. 

Why Tracking Volunteer Expenses Is Essential for UK Charities 

Simplifying reimbursements is a great start, but true control comes from visibility.  

Tracking volunteer expenses helps your charity make better decisions, improve transparency, and stay compliant. 

1. Build transparency and trust 

Detailed, real-time reporting builds confidence with donors, trustees and funders. 

Being able to show, for example, “£5,000 reimbursed in volunteer travel last year,” demonstrates accountability and sound governance. 

2. Strengthen budgets and future planning 

Knowing how much you typically spend per volunteer or per project helps you forecast accurately and make strategic decisions about funding and efficiency. 

3. Stay compliant and audit-ready 

Accurate records protect your charity from financial compliance issues.  

HMRC expects clear documentation of legitimate expenses, and digital records make VAT reclaim and audits far easier. 

4. Protect against fraud and error 

While rare, expense fraud can happen, and prevention is always better than a cure.

When every claim is logged, reviewed, and tied to a clear policy, you reduce the chance of mistakes or intentional misuse. 

Automated expense management apps like ExpenseIn can even flag unusual claims (for example, a missing receipt or an amount outside the usual range) before they’re approved.  

5. Understand the true cost of volunteer impact 

Volunteers are often described as “free,” but supporting them properly does come with costs. Tracking those costs gives you a full picture of what it takes to run your programmes effectively. 

It also helps you tell a better story. Showing that a £10,000 volunteer budget enabled £100,000 worth of community impact is a powerful message for funders.  

And if you notice one programme has significantly higher volunteer costs than others, that insight helps you adjust and improve how you allocate resources.

Simple Ways to Track and Report Volunteer Expenses 

Getting a handle on volunteer expenses doesn’t need to be complicated; it just needs the right approach. 

If you’re still using spreadsheets, make sure you dedicate one exclusively to volunteer expenses and keep it up to date. Summarise costs by category each month (like travel, meals, or equipment) to spot patterns early.

It’s not glamorous, but it’s a solid starting point for small charities. 

As your organisation grows, though, switching to a charity expense management platform can make life much easier.

With tools like ExpenseIn, you can tag volunteer costs, generate instant reports, and compare volunteer versus staff expenses with a click. 

Spreadsheets vs expense management software: What’s the difference? 

How Expense Software Simplifies Expense Management for Nonprofits 

Once your processes are in place, technology makes everything smoother. 

Manual spreadsheets and paper receipts can only take you so far. For busy finance teams, modern expense software turns time-consuming admin into a few quick clicks, helping you stay compliant, accurate and in control. 

ExpenseIn’s ad hoc module is built with charities and nonprofits in mind, designed to remove friction from every step of volunteer expense management so you can focus on impact, not admin. 

• Fast volunteer setup: Volunteers can start submitting expenses straight away through the mobile expense app or web portal. No complex setup or extra accounts needed. 

• Quicker approvals and payments: Each claim is automatically routed to the right approver, with instant notifications and one-click sign-off, so reimbursements happen days faster. 

• Automatic policy checks: ExpenseIn enforces your expense rules (from mileage rates to meal limits) and flags anything outside policy before it’s approved, keeping your charity compliant with HMRC and your internal guidelines. 

• Real-time reporting: Live dashboards show where money’s going, giving you full visibility for budgeting, audits and funding reports. 

• Less admin, fewer errors: With every receipt stored digitally, you can forget about lost paperwork, manual data entry and missed VAT reclaims. 

ExpenseIn also offers a 20% discount for UK charities and nonprofits, making it an affordable, scalable way to modernise your expense process and give your team more time for what matters most. 

Ready to Simplify Your Nonprofit’s Expenses? 

Managing expenses shouldn’t drain your team’s time or your volunteers’ goodwill.

When reimbursements are fast and transparent, everyone wins: your volunteers feel valued, your finance team stays focused, and your charity keeps every pound working where it matters most. 

With ExpenseIn, UK charities can simplify expense management, cut out the admin, and stay fully compliant – all with a 20% nonprofit discount. 

Book a free demo to see ExpenseIn in action, or download our Charity Volunteers Expenses Guide for a ready-to-use policy template and tips.