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Volunteering: What’s Deductible?

If you regularly do volunteer work for a nonprofit organization, it would be nice if you could take a little something off your taxes in return for the time you spend. Unfortunately, the IRS doesn’t see it that way. You can’t deduct the value of the time you serve.

However, you may be able to deduct some out-of-pocket expenses directly related to your volunteer service.

POTENTIAL DEDUCTIONS

If you represent the charity at an out-of-town conference, you may be able to deduct your travel expenses, including meals and lodging.

Or, if you entertain potential donors, the cost of their meals (but not yours) may be tax deductible.

TRANSPORTATION

You may have another shot at a tax break. If you use your car to perform services for a charity, you can deduct 14¢ a mile. Alternatively, you can deduct your actual expenses to operate the car (gas, oil, etc.). You can deduct tolls and parking fees under either method.

OTHER EXPENSES

Expenses you incur, such as uniforms, supplies, postage and meals—while you volunteer are tax-deductible, as long as they aren’t reimbursed by the charity.

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Claiming Deductions for Volunteer Work

Volunteering helps others and gives you a feeling of satisfaction. And it may also give you a tax deduction. To qualify for a deduction, your expenses must directly relate to the charity where you volunteer. Additionally, you must not have been reimbursed for those volunteering expenses and must itemize deductions.

INCIDENTAL EXPENSES

You may deduct expenses for things like postage, paper, printer ink, or other out-of-pocket costs incurred while volunteering. The cost of gear or a uniform, and possibly cleaning services may be deductible.

Any expenses the nonprofit reimburses are not deductible.

TRAVEL

If you use your car for volunteer work, you may be able to deduct 14 cents a mile or the cost of your unreimbursed gas but not your car’s maintenance. Other reasonable travel expenses will be tax deductible if tied to your volunteer work. Meals for volunteer service are 100% deductible.

RECORD KEEPING

You need to substantiate your volunteer expenses. So, as with any deductible expense, keep accurate records. Retain any paper and electronic
receipts and keep a mileage log. This will help make tracking expenses and providing the details to your tax professional at tax time easier.