By Linda Tabor

Given today’s economic atmosphere many of us are interested in finding more ways of keeping the money we still have, or understandably finding ways of getting back some of the money we’ve lost. Generally speaking the majority of people who provide volunteer services to various nonprofits organizations are not necessarily motivated by tax breaks.  But rest assured there is certainly no shame in taking IRS allowable deductible expenses incurred while you do your volunteer work for the nonprofit organizations of your choice.

If you itemize on your 2008 tax return, the tax code allows for volunteers to deduct some of the cost incurred while volunteering as charitable contributions. The following is a brief list of 7 possible tax deductible expenses that volunteers often incur while performing charitable services to qualified non-profit organizations.

• A volunteer may claim 14 cents per mile when using a vehicle to do volunteer work. A volunteer may also deduct unreimbursed parking and toll costs. With the cost of gas it may be a better idea to maintain very good records that will allow the volunteer to deduct actual allowable expenses for gas and oil, as well as tolls and parking fees. Be sure if you are going to claim actual expenses you keep very good records (e.g., credit card receipts, canceled checks, a travel diary, gas receipts, and actual mileage). There has been a recent effort to get the IRS to allow an increase in the charitable mileage deduction, but to date Congress has failed to increase the standard charitable mileage deduction. If you are involved in volunteer work, consider contacting your Senators and Congressmen and ask that the charitable mileage deduction be increased. PLEASE NOTE: It will take over a month for your Congressperson or Senator to receive mail sent to their DC offices due to all the mail needing to be screened. Send your letters to their district offices. Consider calling their staff and meet with their home district staff this important issue. To find out who represents you: www.vote-smart.org

• Out of pocket expenses to attend a convention connected with volunteer work are deductible, but only if the volunteer has been appointed or selected to represent the qualified charitable organization. It is wise and advisable for you to get a letter from the nonprofit organization requesting you represent the organization. The organization’s letter will serve as documentation to support your claim for allowable deductions if the IRS has any question. If you travel as a volunteer and must be away from home overnight, reasonable costs for meals and hotel stays, as well as transportation costs are deductible.

• If a volunteer has expenses greater than $250 dollars, the tax code requires the volunteer have a written receipt in hand to prove out of pocket expenses before filing the income tax return. The receipt for charitable deductions greater than $250.00 dollars from the nonprofit organization must contain: (1) the description of the volunteers services; (2) a statement whether the charity provided any goods or services in exchange for the unreimbursed expenses; (3) a description of the value of any goods and a good faith estimate of any services provided.

• A volunteer may not deduct travel expenses as charitable gifts if there’s a significant element of personal pleasure, recreation, or vacation in the travel. Please relax and continue to enjoy your volunteer work; the IRS will not rule out the deductibility of a legitimate charitable deduction for actual expenses just because you derive pleasure from your good works.

• A volunteer may not deduct the value of services provided to the nonprofit organization; only actual expenses incurred are deductible.

• For the IRS to allow the costs of volunteering to be deductible, contributions must be made to qualified organizations. Ask the organization’s volunteer coordinator if it meets IRS guidelines so you can deduct your expenses for volunteering; most will be able to tell you. Or you can check IRS Publication 78 online for the latest list.

• Not all IRS qualified organizations are charitable organizations under code 501(c)(3).  In addition to public charities and private foundations, there are social welfare organization (Code section 501(c)(4), agricultural/horticultural organizations (Code section 501(c)(5), labor organizations (Code section 501 (c)(5), and business leagues/trade associations (Code section 501(c)(6). (If nothing else, our IRS is extensive in its efforts to classify every possible entity that exists.)

For years, sorry to say, Congress has been talking about creating a charitable deduction for taxpayers who do not itemize, but the provision has yet to be passed. Congress has also failed to pass an increase the charitable mileage rate.

More details about tax deductions for charitable contributions are found in IRS Publication 526, Charitable Contributions.

Lastly, if your deductions are between $500 and $5000 dollars or more, it would be wise to seek the services of a tax professional.