Deducting Charity-Related Expenses

Most people are aware of deducting charitable contributions, but did you know that you may also be able to deduct various expenses incurred while doing charitable work, including travel expenses?

There are many different types of charitable work where volunteers spend hours giving back to their organization of choice. This article explores some of the ways you can receive deductions for costs associated with your volunteer work. If you wear a uniform while volunteering, the cost of the uniform and any necessary dry cleaning and bills may be deductible. Supplies purchased for the organization can be deductible, and even mileage on your vehicle can be deducted should you perform duties such as delivering meals to people’s homes or driving seniors to run errands. Similarly, you may be able to deduct travel expenses related to your charity work.

Unless there is a significant amount of personal travel, a taxpayer can typically claim a deduction for unreimbursed travel expenses related to charitable work. If you are attending an event as a selected representative of the organization, you most likely can deduct your unreimbursed travel expenses. As illustrated by one of the examples in IRS Publication 526, “You spend the entire day attending a charitable organization’s regional meeting as a chosen representative. In the evening, you go to the theater. You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater.” If you are attending the event as a member of an organization, however, and not as a selected representative, then you cannot deduct your travel expenses. IRS Publication 526 provides the following example for ineligible travel expenses, “You work for several hours each morning on an archeological dig sponsored by a charitable organization. The rest of the day is free for recreation and sightseeing. You cannot take a charitable contribution deduction even though you work very hard during those few hours.”

According to the IRS website, possible deductible travel expenses may include:

• Air, rail and bus transportation
• Out-of-pocket expenses for your car (only the direct costs of gas & oil but not lease payments, insurance, license, etc.)
• Taxi fares or other costs of transportation between the airport or station and your hotel
• Lodging costs
• The cost of meals (subject to the 50% limitation)

Another very important aspect of deducting your expenses is to ensure that you keep records to substantiate the amount of your expenses. Additionally, if your expenses are $250 or more, you must obtain additional information from the organization regarding the expenses to serve as supporting documentation. These acknowledgements must be received prior to the filing of your tax return. They should describe the types of expenses claimed and contain proper language in reference to your not receiving any tangible goods or services other than intangible religious benefits in exchange.

Volunteering your time and expertise to a charitable organization can provide many benefits and rewards to you personally and professionally. Please feel free to contact me at dlewis@bpw.com or (805) 963-7811 should you have any questions on whether the expenses you have incurred while working for a charitable organization are deductible or not.