Your Shield: § 31a BGB

Section 31a of the German Civil Code (BGB) states that board members and special representatives of a club are not personally liable (i.e., with their private assets) for minor errors, known as "slight negligence". A wrong click during a bank transfer or a forgotten deadline with the tax office can quickly cause significant financial damage. But don’t worry: the law protects you from exactly these kinds of mishaps. 

Requirements: Who is protected? 

 The protection applies to two groups within the club organisation: 

1. Executive Body Members: These include members of the board of directors, as well as members of bodies defined in the articles of association, such as an advisory board or a supervisory board. 
2. Special Representatives: These are individuals appointed according to the club's articles of association for a specific area of business. A classic example is a full-time managing director responsible for a specialist department. 

The protection against personal liability is intended for voluntary work. This means: 

• The activity is performed free of charge, or 
• the remuneration does not exceed €3,300 per year. 

2026 Update: What’s new! 

By the way: the legislator has relaxed the framework for maximum annual remuneration as of 1st January 2026. Previously, the limit was tied to the "Ehrenamtspauschale" (volunteer allowance), which was €840 per year. From 2026, executive body members and special representatives can earn up to €3,300 for their work and still remain protected from personal liability under § 31a BGB. 

Consequently, voluntary board members are only liable in cases of gross negligence or intent. The board is protected against small mistakes or oversights. 

Why does this lower the barriers? 

• More flexibility: Volunteering and small expense allowances are no longer mutually exclusive. 
• Less bureaucracy: No more complicated distinctions for small payments. 
• Greater legal certainty: Clear limits, clear protection. 
• Strengthening volunteering: Taking on responsibility without the fear of financial ruin.

What does gross negligence mean?

Gross negligence means that a person has breached the required standard of care to a high degree. Specifically, it is defined as follows: "Gross negligence occurs when simple and obvious considerations were not made, and what should have been clear to anyone in the given situation was ignored." 

What does this mean for you? For example, you are acting with gross negligence if you drive a car while under the influence of alcohol and cause property damage while parking. In this case, obvious considerations—such as taking a bus or a taxi—were not made. Furthermore, it should have been clear to anyone that driving while intoxicated poses a significantly increased risk. On the other hand, "slight negligence" would be if you were parking in a multi-storey car park and clumsily opened your door, causing a small scratch on the car parked next to you. 

In the context of daily club life, this means you are not personally liable if you accidentally lose a key or make a wrong click during a bank transfer. If such a mistake happens during your voluntary work, you should immediately try to rectify the error on your own initiative. Taking action is usually the most obvious and logical step. If you do this, a minor error will never escalate from slight negligence into a high-degree breach of care (gross negligence). 

Distinction from "Intent" 

Intent (or wilful misconduct) occurs when you consciously and/or knowingly cause damage. These are actions carried out deliberately and often constitute criminal offences. If a person embezzles club funds for personal gain or conceals income from the tax office, they are generally acting with intent. Naturally, club boards are not protected from the consequences of such actions. 

By the way: Intent and gross negligence are types of misconduct where the law does not protect you in any other life situation either—neither at work nor in your free time. Furthermore, the consequences of intentional acts are usually more severe, as they often involve criminal prosecution.

Internal vs. External Liability – Who is liable and when?

In the context of voluntary work, a distinction is often made between internal liability and external liability. It sounds complicated, but in the daily life of a club, it’s quite simple. The decisive question is always: Who suffered the damage? Was it the club itself or an outside party? 

This distinction is important because it determines who is initially liable and whether a volunteer can be held personally responsible at all. 

Scenario A: I break something within the club (Internal Liability) 

Internal liability refers to damage that occurs within the club. Typical examples include damaged club property, an incorrect bank transfer, or an organisational oversight. 

In these cases, the protection of § 31a BGB is particularly clear. Voluntary board members and officers are not personally liable to the club if they simply make a minor mistake. The club bears the cost of the damage itself or reports it to its insurance. Personal liability only comes into play if the damage was caused intentionally or through gross negligence. 

For daily club life, this means: small mishaps are part of the job, and they do not put your private assets at risk. 

Scenario B: I injure a third party (External Liability) 

The situation is different if a third party suffers damage—for example, a spectator, guest, or participant at an event. This is referred to as external liability. The injured party can contact the club directly, as the club is responsible as the host or organiser. 

The club is therefore initially liable to the outside world. Internally, it then checks whether it can pass the liability on to the member who acted. Here, too, the rule applies: recourse against volunteers is only possible in cases of intent or gross negligence. For normal errors, the protection remains in place. 

This shows: Even in matters of external liability, volunteers are not left unprotected. Personal liability is the exception – not the rule.

Not just duties: Your rights in volunteering

Volunteering means taking on responsibility. However, that doesn’t mean you have to bear all costs and risks yourself. Anyone working for a club has clear rights, which are often underestimated or not even known. 

These rights are intended to ensure that volunteers can fulfil their tasks without being at a financial or organisational disadvantage. 

Reimbursement of expenses: No one works at their own cost

As a rule: Anyone who incurs expenses on behalf of the club is entitled to reimbursement. This includes, for example, travel costs to meetings or events, postage, office supplies, or other out-of-pocket expenses arising from voluntary activities. 

Reimbursement can be made either specifically against proof of purchase (receipts) or as a lump sum, for example, via the "Ehrenamtspauschale" (volunteer allowance). 

Insurance cover: Security through clubs and associations

Many clubs are automatically insured through their umbrella organisations or regional associations. This often includes liability and accident insurance for volunteers. These policies kick in if personal injury or property damage occurs during club work, or if volunteers themselves are injured. 

Insurance cover is a central element in cushioning the risks of volunteering and is often only noticed when something actually happens. 

Right to equipment and support

Those who take on responsibility are also entitled to appropriate equipment. This concerns working materials, access rights, information, and organisational support. Volunteers must be able to fulfil their tasks properly, and the club is obliged to provide the necessary means to do so.

Volunteer Insurance: Why D&O Insurance is Essential

D&O insurance (Directors and Officers insurance), also known as professional indemnity insurance for financial loss, is specifically designed for leadership roles. It protects managing directors, board members, and senior officials from the financial consequences of wrong decisions. Such insurance covers, among other things:

• Compensation Claims: If your actions cause financial loss to third parties, the insurance handles the defence against unjustified claims or the payment of justified ones. 
• Defence Costs: Legal disputes are expensive. The costs for solicitors and court fees are covered. 
• Cyber Fraud: If the club becomes a victim of a cyberattack, the damages incurred by the club are covered up to an agreed limit. 
• Embezzlement: In the event of misappropriation of club funds, insurance protection is provided up to a pre-agreed amount. 

The Added Value for Clubs 

In addition to protecting board members, D&O insurance also offers benefits for the entire club: 

1. Attractiveness of Volunteering: Such insurance shows potential board members that the club takes its responsibility seriously and ensures its leaders are protected.
2. Peace of Mind: Insurance removes the fear of making mistakes and allows for bold decision-making. Board members can focus entirely on their tasks.

Summary & Outlook

Voluntary commitment is the backbone of our club life, and it has never been as well protected as it is today. With the expanded liability privilege from 2026, clear legal safeguards, and additional insurance options, board members no longer need to fear personal financial ruin. Mistakes are allowed to happen, as long as they are not intentional or the result of gross negligence. 

Those who get involved act for the community and are legally protected for doing so. Clubs are well-advised to make this security transparent and to communicate it actively. After all, taking on responsibility in a voluntary role should be empowering, not daunting. So, if you are considering taking on a position: the legal hurdles are low, and the support is strong. Your commitment makes all the difference.