BJCP Grader Incentive Funds

Summary
This program is designed to help recruit new graders and to incentivize existing graders to grade
additional sets. The program goal is to improve grading turnaround time, and indirectly reinvigorate
interest for judges considering joining the BJCP. Adding even one additional set per grader per year
would make a substantial impact in this regard. This overhaul to the grader incentive pay program
will set the reward to a flat amount of $25 per exam set graded, with no minimum required for
payout or maximum cap.

Procedure
As of the end of 2025 the average grader completes less than two sets per year. At this rate the ~150
active graders cannot adequately cover the existing ~150 exams per year (148 exam sets were closed
out in 2024), leading to an ongoing bottleneck. Raising this average would generate additional grading
capacity, which will alleviate the existing grader bottleneck and in turn could be used to increase the
number of exams allowed each month. The additional exams would generate both increased revenue
and new judges.

This program is designed to provide a reward that benefits the judge/grader and the BJCP. The cash
payment is seen as an acknowledgement and appreciation for graders’ efforts, not meant to be a
direct compensation for their time spent grading. The BJCP receives additional members and
revenue based on the increased exam quotas.

The performance of all graders will be reviewed at the end of the calendar year, and the number of sets
for each grader will be determined. After the first of the year each grader will be notified of the reward
balance available, based on the chart below, and rewards will be paid out by the BJCP Treasurer in
cooperation with the Finance Director.

Exam Directors and Associate Exam Directors will be rewarded with a $200 yearly stipend as
appreciation.

Financial Impact
The grader payment program has historically been self-funding through the intake of exam fees, and is
expected to remain so. If exam administration is found to have a net negative effect on the BJCP
budget, this policy will be reworked for sustainability.
In 2024 there were 77 active graders, 43 that were eligible for some level of the reward, totaling $4,675.

If each existing grader added one set for 2024 the basic rewards would have total $6,000, but
this would also provide sufficient capacity to add 38 new exams (increased revenue of $7,600).
An allocation of $4,675 was required for the 2024 grader payouts under the existing payment schedule
and would have increased by $2275 under the new program that removes the minimum and maximum
sets required for payment.

As part of this program the Board directs the Managing Exam Directors to increase the number of
exams offered as deemed prudent to utilize the forecast expanded capacity as the bottleneck alleviates
and grader capacity increases.

Implementation Plan
This update to the grader payment program is authorized for the 2025 and 2026 grading years. The
updated payout schedule outlined above will be applied retroactively for 2025 and will consider
grading completed (including AD/ED/AED review) during 2025 for payouts in 2026. All grading
completed in 2026 will be considered for 2027 payouts.

The grading data will be compiled by a designated member of the exam directorate, and for 2025 and
2026 this will be Greg Toothaker. The Exam List spreadsheet is expected to be the main source
document to determine grader sets. Only exams graded to the exam directorate’s quality standards will
count toward the reward.

Reauthorization
The program will be periodically reviewed by the Board to allow for future changes to the policy.

Tax Implications
The BJCP will not be required to provide 1099-MISC tax forms as the individual payment amounts are
less than $600. For graders, all miscellaneous personal income is taxable, so this should be reported
along with any other judge-related income. Non-US graders may face additional tax implications, both
within the US and in their home country, which should be investigated prior to requesting the rewar.

  • http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Reporting-Payments-to-Independent-Contractors