Current law allows charities to reimburse volunteers, on a nontaxable basis only, up to the charitable mileage rate of 14 cents per mile. Alternatively, volunteers are permitted to deduct their “out of pocket” expenses incurred in providing donated services — when those expenses are not reimbursed.
The Internal Revenue Service (IRS) has the authority to regulate mileage rates for business and medical/moving purposes, but not for charitable activities. The charitable rate can only be adjusted through the legislative process and has remained unchanged since 1997. Read the IRS notice of mileage rates for 2019.
Current legislative proposals, like the Volunteer Driver Tax Appreciation Act (H.R. 2072), would align the reimbursement rate for charitable driving with that of businesses.
Independent Sector supports increasing the mileage reimbursement rate. Visit our Action Center and urge your legislators to fix the volunteer mileage rate today!