Are Corporate Money Gifts For Volunteers Appropriate?

Is a corporate money gift for volunteers appropriate? It may seem tempting in some circumstances, but in general a corporate money gift for volunteers is not the best path to follow.
Giving money to volunteers can cause problems in two areas: 1) Legal status of the volunteer as non-employee 2) Motivation and productivity of the volunteer
First, there is the question of definition - if you gift money to a volunteer, does that payment for services then create an employee-employer relationship? If the corporation is a nonprofit, payments to volunteers could risk the nonprofit status. If a paid volunteer later has some problem, for example, an injury or death on the task, will the volunteer or their family claim employee status and seek further compensation? By paying volunteers, there could be a legal question regarding their status as employees (or not) of the corporation.
Second, a volunteer acts, in most cases, on a self appreciating or altruistic basis. That is, the work or service is performed not for personal monetary gain, but for self esteem and a desire to help others. By paying this volunteer money, several things could occur. The volunteer may become less motivated to serve as they look at the "pay scale" and realize how underpaid they are for their "work", as the volunteerism morphs into work. This would be counterproductive to the task at hand as well as the benefits to the corporation. Another possibility would be that the volunteer actually performs at a lesser level as they receive a lower altruistic benefit. The task becomes just another facet of working.
While it may seem that a corporate money gift for volunteers might be a thoughtful idea, it would be better to provide the volunteer with some sort of status gift, a small token, or even a donation to one of a few charities selected by the corporation in that volunteers name. The goal is to expand the donation of time and skill and energy that the volunteer is already freely giving, thereby increasing the volunteers self-satisfaction and feeling of contributing to the cause(s).
If a corporation insists on giving a money gift for volunteers, it should be kept minimal, a token. And, run the idea past legal or tax counsel prior to activating the gifting to be positive the corporation neither jeopardizes its standing as a nonprofit, or it's employer-employee standing or lack of standing with the volunteers.
It is always better to be prepared by investigating the possible ramifications of corporate actions prior to acting. This can save not only grief later on, but time and money in the long run. Many corporations offer volunteers a "thank you" luncheon or program of recognition in lieu of money gifts. The volunteers do not expect payment for their services, and enjoy the recognition programs.