
If Jane Doe -- let's say an attorney -- drives her car to a business meeting with a client, she can now (as of January 1, 2015) deduct 57.5¢ per mile on her tax return. If she drives, for instance, 50 miles, she can deduct $28.75. If, the next day she drives her car 50 miles to volunteer as an attorney at an immigration rights clinic, she can only deduct 14¢ per mile... $7 total.
The
IRS raised its rates for business mileage from 56¢ in 2014 to 57.5¢ for 2015. We're glad the IRS has recognized that mileage costs have gone up, but they've gone up for volunteers, too! CalNonprofits has consistently supported efforts to make the volunteer mileage deduction equal to the business mileage deduction, but once again the IRS has not listened.
But don't forget to let volunteers know they can deduct unreimbursed mileage and other costs of doing volunteer work:
Mileage: 14¢ per mile
Transportation: bus, train, streetcar fares to get to and from volunteer activities
Home fundraisers: catering expenses if a volunteer hosts a board meeting, fundraiser or other event at his or her home
Reminder: such deductions are usually only for volunteers who itemize on their tax returns. Nonetheless, let all volunteers know about these possible deductions. It's one way that nonprofits can express their support for volunteerism. We've provided a
Sample Form for Volunteer Mileage Deductions you can give to volunteers, in an easy-to-customize Word format.
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If this is a concern for your organization and/or your volunteers, you can ask the IRS for an advisory letter. Until the IRS publishes this interpretation and begins to enforce it, it’s probably not a public policy priority to change it. Thank you for your question and concern!
How do you suggest we move forward from here?
Thank you!
No change to the volunteer mileage rate. The “Consolidated and Further Continuing Appropriations Act, 2015,” was signed by President Obama in December. That law funds all of the federal government through 9/30/2015 except the Department of Homeland Security. The DHS funding bill is tied up in the immigration debate. The IRS has the power to adjust the standard business mileage rate, and it does so every year. The volunteer mileage rate is fixed in statute and requires action by Congress to change it. More information can be found here:
http://new.councilofnonprofits.org/trends-policy-issues/volunteer-mileage
A nonprofit can reimburse volunteers for expenses at the business rate, but if the expense is reimbursed, of course the volunteer can’t deduct it at all.
Also as a reminder, we’re not tax accountants and nonprofits generally shouldn’t give out tax advice . It’s best to encourage volunteers to speak with their own tax accountants.
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