Volunteer Mileage

Volunteers who drive their vehicles when they do the work of a nonprofit are restricted in tax law to deducting only 14 cents per mile, whereas the business-use deduction is 50 cents per mile. Volunteers who are reimbursed by the charity for the miles they drive must pay income taxes on any amount in excess of 14 cents per mile. Congress should eliminate the distinction between the Standard Business Mileage Rate and the substandard Charitable Mileage Rate so there is one rate, set the same way (flexibly by the IRS) and treated the same way (as nontaxable income). Learn more and view talking points on this issue.

Why It Matters to Nonprofits

America’s volunteers deserve to be able to claim the same mileage rate as business and federal employees who work for wages. Increased transportation and energy costs have caused many individuals to stop donating their time and talent to helping others. This unfair mileage restriction puts at risk many Americans, particularly those in rural areas who are served by volunteers: individuals who depend on getting Meals-on-Wheels dinners delivered, disabled veterans who depend on volunteers to drive them to doctors, and homebound seniors who depend on volunteers to deliver prescriptions – all because volunteers can no longer afford to help. Eliminating the difference between the charitable mileage rate and the standard business rate will allow volunteers to defray one of the largest costs associated with volunteering.

Status

Four bills have been introduced in the 111th Congress that address this issue:

• The GIVE Act HR 524 and S 243

These bills, sponsored by Representative John Lewis (GA-5) and Senator Ben Cardin (D-MD), would allow the Secretary of the Treasury to adjust the volunteer mileage rate and allow volunteers who are not reimbursed for mileage expenses to take the incurred expense as a tax deduction.  The bill requires that the rate be no less than the adjustable rate for moving expenses, currently 16.5 cents.

• HR 345

This bill, sponsored by Representative Todd Platts (PA-19), sets the volunteer mileage rate at the standard business mileage rate.

• HR 271

This bill increases the volunteer mileage rate to 58.5 cents for individuals that deliver meals to the elderly, disabled, and other frail individuals. 

What Nonprofits Can Do

Contact your Representatives and Senators and tell them to make it easier for individuals to volunteer by raising the charitable mileage rate. 

Additional Resources:

• Recent Congressional Research Service Report

The Internal Revenue Service annually updates the standard business mileage rate, but the volunteer rate is fixed in statute at 14 cents.