Thank you for taking the time to answer my question. It’s about mileage reimbursement. As President of my local unit, I sent someone to a conference in October. I reimbursed their mileage with a check for the business mileage rate from the IRS of 49.5 cents per mile. There is another conference next month but, when I pulled up the 2006 IRS mileage rates, I found that there is a rate for “charitable organizationsâ€. As a 501c3 non-profit, we would probably fall under that category of 14 cents per mile which means I overpaid the person considerably in October. Now, I’ve called two people from the IRS, one person from state level, one person from district level, and have posted it on the message board with no response thus far. All three people have different answers with the common consensus that the person can just write it off on their taxes. However, this mileage amount is no where near the required amount for an itemized deduction and the guy has never itemized his taxes in 17 years of filing because the standard deduction was always higher. My questions are (one) do you think this might be considered fraudulent if, in fact, we were supposed to reimburse him at only 14 cents per mile and (two) if it is “my call†as President, do you think a mileage reimbursement is a “legitimate†expense? I think it’s just unfair to ask this guy to drive 300 miles (total) and not give him anything for gas, mileage, etc. but I, as President, never want to be labeled for misappropriation of funds. Thanks for your help! Sorry for the length.
I wouldn't support mileage reimbursements for everyday PTO chores around town.
But I recall a request here on the boards from two years ago where a mom was willing to drive across the state to save the group a big chunk on a ridiculous delivery charge. Another example: I think it would be OK to reimburse travel/mileage if sending a member to a distant training conference. I'd use the standard business mileage reimbursement for that (that's the rate the IRS has determined is equivalent to gas + wear-and-tear on car). I supsect a lot of volunteers would decline the reimbursement (and consider it another way of helping), but I'd hate to see less-well-off volunteers shut out of these chances.
This is a perfectly fine discussion for your membership to have. The membership should get the vote on the general idea of reimbursement (does our group allow it? and under what circumstances?); and then the leadership would be charged with putting that agreed-upon policy in practice.
As for deducting volunteer mileage -- yes, if your group is a 501c3, then volunteers can take a deduction for mileage spent on official business (as long as it's not reimbursed by the group). That deduction would be at the IRS' nonprofit milegae rate. Definitely consult your accountant on that before filing.
This isn't something our group has paid for in over 5 years, but it used to be that they paid what our district approved.
When we go on a long trip to meetings, the person driving gets reimbursed for gas expenses if they ask, but just the cost of gas, not a mileage rate and not given for day to day errands.
The irony of commitment is that it’s deeply liberating-in work, in play, in love. The act frees you from the tyranny of your internal critic, from the fear that likes to dress itself up and parade around as rational hesitation. To commit is to remove your head as the barrier to your life. --Anne Morris
I do have to agree with library mom. As much as gas is and as much as I hate to drive I wouldn't feel right asking for gas money for a volunteer position. But can we write it off on our taxes? Is that what you mean?
As a volunteer, why would you ask for mileage reimbursements? Unless they requested you to do something out of the ordinary. I'm not really sure where you are going with this question. Sorry.
Has anyone sought mileage reimbursements from their organization? If so, do you use the "business mileage rate" or the "mileage rate for charitable organizations" from the IRS?
