How your volunteers can deduct charity travel expenses
You’re likely aware when your donors provide financial gifts or goods to your charity they’re entitled to a tax deduction…but did you know their traveling in the service of your group or other nonprofits may qualify as deductible travel expenses?
Some stipulations include:
- Volunteers must perform genuine work for your charity for most of the trip. If they spend a lot of time with their toes in the sand—without any, or many, duties—the trip classifies as a vacation.
- The IRS must recognize your organization as a qualified charity. Check your group’s status on the IRS website. Churches and governments automatically qualify and won’t appear on the list.
- Volunteers’ time and talents are their gift to your organization, so they’re not deductible.
- Expenses they claim must be:
- Unreimbursed,
- Connected directly with the services, and
- Spent only because of the services provided.
- They can’t claim personal, living or family expenses.
- Deductible expenses they can claim include:
- Transportation – air, rail, bus and even the taxi from the airport or station to their lodging;
- Mileage, if they’re driving (14 cents a mile); and
- Lodging and meals.
While your volunteers likely don’t give up their time and energy to gain tax deductions, be sure to let them know how they can. If you need help understanding charitable or other deductions, contact the Online Stewardship Accounting & Consulting team for help: Lynn@onlinestewardship.com or 904-398-4747.
