Volunteering Can Mean Deductions
DONATING YOUR TIME
Even though you may volunteer many hours working
for or assisting a charitable organization in some
manner, the value of your time is not deductible.
However, expenses incurred while a volunteer (e.g.,
travel costs to and from the charity's location)
are deductible. You may also be able to deduct
out-of-pocket costs you incur on behalf of the
charity as well.
TRAVEL AWAY FROM HOME FOR CHARITY
You can take a charitable deduction for travel
expenses, including meals and lodging, you incur
while performing services for a charity in an out-of-town
location. However, you must be able to meet two
important criteria in order to get this deduction:
1. You must perform services for the organization
in on official capacity while you're away from
home.
2. No "significant element of personal pleasure" must
be connected with the travel. Does this mean your
trip can't be enjoyable? No, but it does mean that
the primary purpose of your travel must be related
to your charitable duties, not a personal vacation.
NON-CASH DONATIONS
Your donations don't always have to be in cash.
The "fair market value" (FMV) of donated
items like used clothing, furniture and appliances
is also a deductible item. (NOTE: FMV
is the price goods are likely to sell for on the
open market).
