what is an honorarium

An honorarium is a payment made to a person for their services in a volunteer capacity or for services for which fees are not legally or traditionally required. It is a voluntary payment given to someone in exchange for their voluntary service, and the giver is not legally bound to pay a set amount. An honorarium is usually made to a guest speaker or lecturer as a "thank you" and gesture of goodwill and appreciation. It is not based on an agreed amount between the individual providing services and the individual seeking services, and if payment is agreed upon, this constitutes a contractual agreement. Honoraria are typically used to help cover expenses related to the service provided. An honorarium is considered self-employment income and is typically reported with related expenses on Schedule C of IRS Form 1040 for a tax return. In Canada, honoraria are considered salary and thus, taxable income under the Income Tax Act.