Other out-of-pocket expenses. Volunteers may deduct other expenses they incur during the course of their volunteer work. For example, board members might deduct unreimbursed phone, postage, and copying charges associated with preparing for meetings. Volunteers at an animal shelter can deduct the treats that they're asked to provide in order to help train dogs during walks. Sunday school teachers can deduct art supplies they bring in.
If you ask volunteers to purchase a uniform -- for example, an apron identifying them as a hospital helper -- they can deduct both the purchase price and any upkeep costs. However, the uniform must not be suitable for everyday use providing a T-shirt with a logo or asking your theatre ushers to always wear black won't be enough.
Also, your organization must require the volunteers to wear the uniforms while performing services. Although you should alert volunteers to these potential tax deductions, don't get into the business of giving personalized tax advice.
Instead, suggest that volunteers talk to a tax professional, use a tax preparation software program, read IRS Publication , Charitable Contributions at www. To learn more about strategies for incorporating volunteer help into your nonprofit's fundraising and other efforts, read Effective Fundraising for Nonprofits: Real-World Strategies That Work , by Ilona Bray Nolo.
The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service.
Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. A volunteer gets no deduction at all if he or she had only nominal duties, or had no duties for significant parts of the trip.
Example: Betty is a troop leader for a tax-exempt youth group and helps take the group on a camping trip. Betty is responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Betty participated in the activities of the group and enjoyed her time with them. She oversaw the breaking of camp and helped transport the group home.
Betty can deduct her travel expenses. Example: Ben works for several hours each morning on an archeological dig sponsored by a nonprofit organization. The rest of the day he is free for recreation and sightseeing. He cannot take a charitable contribution deduction for his travel expenses even though he worked very hard during those few hours. A volunteer can deduct unreimbursed expenses incurred in attended a convention related to charity's work.
These include transportation expenses and a reasonable amount for meals and lodging, while away from home overnight.
A volunteer can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that must be worn while volunteering for a charity. For example, a person who volunteers as a Red Cross nurse's aide at a hospital can deduct the cost of uniforms he or she must wear.
A volunteer who works with a charity whose purpose is to reduce juvenile delinquency can deduct amounts he or she pays to allow underprivileged youths to attend athletic events, movies, or dinners. The youths must be selected by the charity, not the volunteer. The volunteer may not deduct his or her own expenses incurred in accompanying the young people. You may deduct the full cost of long distance telephone calls cellphone charges made on behalf of a charity.
If you host a fundraiser, board meeting, or other event for a charity, you can deduct all catering expenses as a charitable deduction. The substantiation requirements for deducting unreimbursed volunteer expenses differ according to the amount of the expenses. But the volunteer should keep records of his or her expenses in case they are ever questioned by the IRS. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Or a bit more money in your pocket? Tracking your volunteering expenses may help you free up some money so you may be able to give even more back.
In this Dec. Undoubtedly, most pet owners love their pets. Well for volunteers who foster a pet, or several pets, those costs do qualify for a tax break. She has been known to adopt a few along the way. As a foster pet parent, she is constantly covering the cost of things like transporting pets, veterinary bills, food, beds, toys, etc. On the flip side, if Kliche were to spend that much out of pocket as part of her charity work, she could legitimately deduct those expenses from her taxes.
While your volunteering may not rack up this much expenses, you may still be entitled to some tax deductions. Here are a few things to consider. If you are doing good, the IRS would like to do something nice for you by giving you a little tax break for your hard work. If you skip this part when filing your taxes, you may be leaving some money on the table.
I know a lot of volunteers may think getting a tax deduction may diminish their hard work for the cause they are passionate about but let me flip that on its head just a bit. With a little extra money in their pockets, they could make a monetary donation to their favorite nonprofit organizations or maybe work a little less, freeing up more time to volunteer.
Just a thought. Either way, the expenses you incur volunteering may add up to a nice tax deduction. To qualify, the amount you are planning to deduct must directly relate to the charity where you volunteer. In addition, you must not have been reimbursed for those expenses. Furthermore, you must also itemize when filing your taxes. Here are a few more specifics of what you can and cannot deduct.
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