14.4 Unreimbursed Expenses of Volunteer Workers
If you work without pay for an organization listed at 14.1, you may deduct as charitable contributions your unreimbursed expenses in providing the services. This includes commuting expenses to and from its place of operations, and meals and lodging on a trip away from home (20.6) for the organization.
To qualify for the deduction, the expenses must be incurred for a domestic organization that authorizes you to travel. You may not deduct the value of your donated services.
Substantiating expenses under $250.
The IRS does not have a record-keeping regulation that is specific to unreimbursed volunteer expenses under $250. The Tax Court held in a 2011 decision that volunteer expenses of under $250 are subject to the rules for cash gifts of less than $250 (14.14), even though the terms of the cash gift regulation are a bad fit for volunteer expenses. The regulation requires a cash donor (14.14) to have cancelled checks or receipts from the charity, or in lieu of either, other reliable written records showing the name of the charity and the date and amount of the contribution. These requirements were not written with volunteer expenses in mind, as a volunteer’s out-of-pocket expenses (supplies, for example) will generally be paid to third parties rather than to the charity itself. In the case before it, the Tax Court held that a volunteer was in substantial compliance with the IRS rules for expenses of less than $250 because she had records showing the name of the payees, and the dates and amounts of payment, the same information that would be on cancelled checks from the charity.
Note: Under 2008 proposed regulations, the substantiation requirements for volunteer expenses of under $250 would be waived, but the proposal has not been adopted.
Substantiating expenses of $250 or more.
To deduct an unreimbursed expense of $250 or more, such as for a plane ticket or a luncheon you hosted on behalf of the organization, you need, in addition to records substantiating the amount of the expense, a written acknowledgment from the charity (14.14). The acknowledgment must describe your services, and state whether you were provided any goods or services by the charity. If so, an estimate of their value must be given unless the benefits are “intangible religious benefits.” The acknowledgment must be obtained by the date you file your return, but if you file after the due date (or extended due date if you get an extension), the acknowledgment must be obtained by the due date of your return, including extensions. For 2012 returns, the due date is April 15, 2013, unless you get an extension.
Car expenses.
If you used your car (or other motor vehicle) during 2012 to provide volunteer services for a charity, you may deduct either the actual vehicle operating costs (such as gas and oil) that are directly related to your volunteer services, or you may claim a flat mileage rate of 14 cents per mile. The 14-cents-per-mile rate was set by Congress in 1997 and although there have been numerous proposals to increase the rate, none have yet been enacted into law; see the e-Supplement at jklasser.com for any update.
Parking fees and tolls are deductible whether you claim actual expenses or the flat mileage rate.
Other deductible volunteer expenses.
In addition to car expenses, you may claim the following unreimbursed expenses:
- Uniform costs required in serving the organization.
- Cost of telephone calls, and cost of materials and supplies you furnished such as stamps or stationery.
- Travel expenses, including meals and lodging on overnight trips away from home as an official delegate to a convention of a church, charitable, veteran, or other similar organization. If you are a member but not a delegate, you may not deduct travel costs, but you may deduct expenses paid for the benefit of your organization at the convention.
- All related expenses in hosting a fund-raiser are deductible, from the invitations to the food and drink.
The IRS does not allow a deduction for “babysitting” expenses of charity volunteer workers. Although incurred to make the volunteer work possible, babysitting costs are a nondeductible personal expense. Furthermore, the expense is not a dependent care cost; it is not related to a paying job.
Planning Reminder
Recreational purposes may bar travel expense deduction.
To claim a charitable deduction for travel expenses of a research project for a charitable organization, you must show the trip had no significant element of personal pleasure, recreation, or vacation.