Honorarium vs. Stipend — What's the Difference?
Edited by Tayyaba Rehman — By Urooj Arif — Updated on March 26, 2024
An honorarium is a voluntary payment given for services where no fee is legally required, while a stipend is a fixed regular sum paid as a salary or allowance.
Difference Between Honorarium and Stipend
Table of Contents
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Key Differences
An honorarium is typically offered as a gesture of appreciation for a service performed out of goodwill, not as a contractual obligation. It's often given to professionals or experts who contribute their knowledge or expertise in a specific event or project, like guest speakers at a conference. On the other hand, a stipend is a predetermined amount paid to individuals, usually on a regular basis, to support them during internships, apprenticeships, or while they undertake a specific task or project, especially when the work is part of an educational or training program.
Honorariums are discretionary in nature and are not intended to be a form of salary for the services provided. They are often given in contexts where payment is not expected or required, serving as a token of appreciation rather than compensation. Stipends, however, are typically outlined in an agreement or contract and are paid to individuals to cover living expenses and other necessities during their tenure in a role or program. This structure highlights the formal vs. informal nature of the financial support provided.
The amount of an honorarium is usually modest and symbolic, reflecting the voluntary aspect of the service provided. It's not calculated based on hours worked or tasks completed but rather is a nominal gesture of thanks. Stipends, conversely, are calculated to cover basic living expenses for the duration of an individual's involvement in a program or project, reflecting a more substantial financial support mechanism.
Honorariums do not usually carry any legal or formal obligation for either party involved. The giver is not obliged to offer it, and the recipient is not required to accept it. Stipends, in contrast, often come with specific expectations or requirements, such as completing a project, participating in a program, or contributing to research, and are part of an agreement that outlines these terms.
Tax implications for honorariums and stipends can differ significantly based on local laws. Honorariums are generally considered taxable income, but the lack of a formal contract can sometimes complicate tax reporting. Stipends are also taxable, but since they are usually part of a structured program, reporting for tax purposes is often more straightforward.
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Comparison Chart
Definition
Voluntary payment for services.
Fixed regular sum as a salary or allowance.
Nature
Discretionary, no legal obligation.
Regular, often contractual.
Purpose
Show appreciation for voluntary service.
Support living expenses during work or training.
Amount
Usually nominal and symbolic.
Calculated to cover living expenses.
Expectations
No formal expectations or requirements.
May have specific obligations or goals.
Compare with Definitions
Honorarium
A voluntary payment given as a token of appreciation.
The artist received an honorarium for her guest lecture at the university.
Stipend
A fixed regular payment to support living expenses.
The intern received a monthly stipend to help cover her housing and meals.
Honorarium
Not expected or legally required.
The guest speaker was surprised and pleased to receive an honorarium for his time.
Stipend
Helps cover basic necessities during the program.
The stipend wasn't large, but it was enough to live on while studying abroad.
Honorarium
Reflects goodwill rather than compensation.
The honorarium she received was a small but meaningful gesture of thanks.
Stipend
Associated with internships, fellowships, or training.
As part of the fellowship, each participant was granted a stipend.
Honorarium
Often given to professionals or experts.
The scientist was awarded an honorarium for participating in the research symposium.
Stipend
Taxable income, usually with straightforward reporting.
Her stipend was reported as income, similar to a traditional salary.
Honorarium
Taxable, with specific reporting requirements.
He had to report the honorarium as income during tax season.
Stipend
May come with expectations or project completion.
The stipend was contingent upon completing the research project.
Honorarium
An honorarium is an ex gratia payment, i.e., a payment made, without the giver recognizing themselves as having any liability or legal obligation, to a person for his or her services in a volunteer capacity or for services for which fees are not traditionally required. It is a common remuneration practice in schools or sports clubs, for teachers and coaches.
Stipend
A stipend is a regular fixed sum of money paid for services or to defray expenses, such as for scholarship, internship, or apprenticeship. It is often distinct from an income or a salary because it does not necessarily represent payment for work performed; instead it represents a payment that enables somebody to be exempt partly or wholly from waged or salaried employment in order to undertake a role that is normally unpaid or voluntary, or which cannot be measured in terms of a task (e.g.
Honorarium
A payment given to a professional person for services for which fees are not legally or traditionally required.
Stipend
A fixed and regular payment, such as a salary for services rendered or an allowance.
Honorarium
Compensation for services that do not have a predetermined value.
Stipend
(archaic) A regular fixed payment made to someone (especially a clergyman, judge, soldier, or teacher) for services provided by them; a salary. 15
Honorarium
A fee offered to professional men for their services; as, an honorarium of one thousand dollars.
Stipend
(by extension)
Honorarium
An honorary payment, usually in recognition of services for which it is not usual or not lawful to assign a fixed business price.
Stipend
Some other form of fixed (and generally small) payment occurring at regular intervals, such as an allowance, a pension, or (obsolete) a tax. 16
Pocket money
My stipend for doing public service is barely enough to cover living expenses.
Honorarium
A fee paid for a nominally free service
Stipend
(education) A scholarship granted to a student. 20
Stipend
(obsolete)
Stipend
Money which is earned; an income.
Stipend
A one-off payment for a service provided.
Stipend
To provide (someone) with a stipend (an allowance, a pension, a salary, etc.). 16
Stipend
Settled pay or compensation for services, whether paid daily, monthly, or annually.
Stipend
To pay by settled wages.
Stipend
A sum of money allotted on a regular basis; usually for some specific purpose
Common Curiosities
What is an honorarium?
An honorarium is a voluntary payment given as a gesture of appreciation for services provided, where no fee is legally or traditionally required.
What is a stipend?
A stipend is a fixed regular payment given primarily to cover living expenses during internships, apprenticeships, or educational programs.
Are stipends only for students or interns?
While commonly associated with students and interns, stipends can also be provided to individuals in fellowships, residencies, or other training programs.
Can you negotiate an honorarium or stipend?
Stipends may sometimes be negotiable based on the program or agreement, but honorariums, being voluntary, are usually set at the discretion of the giver.
Can an honorarium be considered a salary?
No, an honorarium is not considered a salary but a token of appreciation for a service, whereas a stipend can function like a salary for interns or students.
Are there any legal obligations with an honorarium?
No, an honorarium does not create a legal obligation or contract between the giver and the recipient.
Is a stipend the same as a scholarship?
Not exactly. While both provide financial support, stipends are usually for living expenses during work or training, whereas scholarships are primarily for educational expenses.
How is an honorarium determined?
An honorarium amount is typically determined by the giver based on the nature of the service and as a gesture of thanks, not by hours worked or tasks completed.
Do I need to pay taxes on an honorarium or stipend?
Yes, both honorariums and stipends are generally considered taxable income, though the specifics can vary by jurisdiction.
Can an honorarium cover expenses?
While it's not the primary purpose, an honorarium can incidentally cover expenses related to the service provided, like travel or materials.
Can a stipend be withdrawn?
Depending on the terms of the agreement, a stipend can be withdrawn if the recipient fails to meet the specified requirements or obligations.
Are honorariums and stipends common in all industries?
They are more common in academic, research, and non-profit sectors, though they can be found across a variety of industries.
How do organizations budget for stipends?
Organizations typically budget for stipends as part of their operational expenses, allocating funds to support interns, students, or fellows as part of their programs.
What happens if you decline an honorarium?
Declining an honorarium has no legal repercussions; it's simply a personal choice, often made due to ethical reasons or organizational policies.
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Written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
