I received a 1099NEC from a volunteer veterans community service organization. The money they paid me was to compensate me for money I paid out. Why do I have to claim?

[Fredthe9th]

The money paid me was to cover whatever expenses I encountered in setting up and managing the new local organization on their behalf.  It was a pre-determined refund, not pay.  Why is this considered Ind Contractor income?  It wasn't income.

[PattiF]

One of the most common reasons you’d receive tax form 1099-NEC (Form 1099-MISC in prior years) is if you're self-employed and did work as an independent contractor during the previous year. The IRS refers to this as “nonemployee compensation.” See TurboTax Tips for more info about 1099-NEC

Since you shouldn't have received a 1099-NEC for truly reimbursed expenses at all, you can request that the payer void the 1099-NEC correctly. 

Or you can enter the 1099-NEC as you received it as self-employment income and then report the exact amount as the expense you paid out in the first place to end up with a net $0 Schedule C. See this  TurboTax article for information about Filing with a 1099-NEC as self-employment.