Policy Feature: Charitable Mileage Deduction

David Ross

Note: This is the first in a regular series of “Policy Features” on current policy issues from a variety of guest bloggers as well as our own bloggers. This post comes from David Ross, J.D., Public Policy Officer at the Pennsylvania Association of Nonprofit Organzizations.

The IRS recently raised the Standard Business Mileage Rate to 58.5 cents per mile to reflect the true cost of driving. Yet the Charitable Mileage Rate for volunteers who use their own vehicle for 501(c)(3) nonprofit service remains at 14 cents. Unlike the Standard Business Rate which is variable and has steadily increased over time, the Volunteer Rate is fixed under §170(i) of the Internal Revenue Code, and has not increased in over 10 years.

With gas prices reaching $4.00 per gallon, it costs between 50 and 70 cents to drive a car one mile. Many Americans who use their own cars for volunteer service can no longer afford to volunteer. Meals-on-Wheels programs across the country are facing critical volunteer shortages; and they are not alone. For organizations that rely on volunteers, the high price of gas is devastating. Raising the volunteer rate would relieve volunteers and the organizations that rely on them.

Congressman Todd Platts’ (R-York) has a bill pending in the House Ways and Means Committee that would raise the IRS Charitable Volunteer Mileage Rate. H.R.2020 would set the Volunteer Mileage Rate at the Standard Mileage Rate that businesses receive (currently at 58.5 cents). According to the Joint Tax Committee, H.R.2020 would cost $5.5 billion over 10 years. It sounds expensive, but it’s not. Volunteers are essential to the delivery of charitable, cultural, and civic service, return more to the community than they receive, and are in critically short supply.

There are at least 8 bills in Congress that address the Charitable Mileage Rate – and more are on the way. With the end of the 110th Congress fast approaching, Washington is trading bills and cutting deals at a feverish pace. Congress has yet to consider the true value of volunteerism, or how much America relies on volunteer service.

These are challenging times for charities. Inflation and the rising costs of gas are forcing some to close their doors and others to cut services. Whether you volunteer at your local shelter or serve on a nonprofit board, all volunteers for a 501(c)(3) are entitled to deduct from their taxes at the volunteer mileage rate. Whatever the rate, it should at least cover the cost of getting there. If the Charitable Mileage Rate is the value that our society places on volunteers, then 14 cents is a national embarrassment.