Monday, November 12, 2018

Volunteer Mileage

    This article by the National Council of Nonprofits is centered around an issue that the Council believes needs to be changed, the volunteer mileage problem. Currently, volunteers who drive their vehicles while performing duties for a nonprofit are only permitted to deduct 14 cents per mile. This law is set in statute and has not been changed in many years. Also, volunteers who get reimbursed for their miles by the charity they volunteer for must pay income taxes on any amount in excess of 14 cents per mile. The Charitable Mileage Rate is lower than the Standard Business Mileage Rate that some employers pay their employees for miles driven while working. The National Council of Nonprofits believes that Congress should eliminate the distinction between the different rates for charitable organizations and businesses, so there is only one rate that’s set the same way by the IRS. To learn more about this problem that nonprofits are facing, click here: https://www.councilofnonprofits.org/trends-policy-issues/volunteer-mileage

 

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https://lawprofessors.typepad.com/nonprofit/2018/11/volunteer-mileage.html

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Comments

NCN's position is understandable, yet intriguing. They opposed the recent tax cut, which is anticipated to reduce the percentage of federal income tax filers who elect to itemize deductions (like mileage) from its current 30%-35% to as few as 5%-10%. Meanwhile, NCN supports making the charitable deduction universal (similar to the way it was done briefly in the 1980s). Why not advocate for making the mileage deduction universal, especially since almost all itemizers will have incomes well into six figures and above (and therefore unlikely to see volunteer mileage deductibility as a material issue)?

Posted by: Michael L. Wyland | Nov 13, 2018 7:45:27 AM

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