Deductibility of Volunteering Expenses

Is it a 501(c)(3)?

as there is no personal benefit -- ie. if she went to the foreign country and visited friends, had a vacation, as well as did volunteer stuff, then the entire airfare is not deductible. And the organization must be a

501(c)(3).

BEGIN QUOTE

Expenses in Giving ServicesAlthough you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be: a.. Unreimbursed,

b.. Directly connected with the services,

c.. Expenses you had only because of the services you gave, and

d.. Not personal, living, or family expenses.

Table 2 contains questions and answers that apply to some individuals who volunteer their services.

END QUOTE

You may even be able to deduct the mileage to get from your home to the airport -- either actual expenses or 14 cents a mile.

Let's see what others say. Maybe I'm too generous :).

I would be very cautious. The website (it's actually medlifeweb.org) makes no mention of it being a 501(c)3 organization. Searches at Guidestar and the IRS Exempt Organization site come up empty for Medlife and/or Medvida. I wouldn't accept the fact that any donation would be deductible without further explanation from Medlife as to the basis for their tax-deductible claim.

Ira Smilovitz

OK, The Schedule A Instructions include:

Contributions You Can Deduct Contributions can be in cash, property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organizations described earlier.

Gifts of $250 or more. You can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the information in (1) and (2) next.

1. The amount of any money contributed and a description (but not value) of any property donated.
2. Whether the organization did or did not give you any goods or services in return for your contribution.

Contributions You Cannot Deduct Travel expenses (including meals and lodging) while away from home, unless there was no significant element of personal pleasure, recreation, or vacation in the travel.

So it seems to me my daughter's registration fees, airfare, and other expenses are potentially deductible, provided the organization provides a statement for each component above $250 with items 1 and 2 above. No part of her trip is vacation, pleasure, or personal time. If I pay these expenses, can I claim the deductions? It's not worth anything for her to claim the deductions since as a full-time student her income is less than the standard deduction.

I agree the airfare, transportation, and other expenses associated with this volunteer effort are deductible. No part of her trip is vacation, pleasure, personal, etc. Let's assume that the firm is 501(c)(3) since their web site suggests direct donations are deductible.

The question remaining then is, if I pay the costs, can I claim the deduction, even if it is my daughter doing the volunteer work, and I claim her as a dependent on my return?

Is this the correct web site?

Is it a 501(c)(3)?

as there is no personal benefit -- ie. if she went to the foreign country and visited friends, had a vacation, as well as did volunteer stuff, then the entire airfare is not deductible. And the organization must be a

501(c)(3).

BEGIN QUOTE

Expenses in Giving ServicesAlthough you cannot deduct the value of your services given to a qualifiedorganization, you may be able to deduct some amounts you pay in givingservices to a qualified organization. The amounts must be: a.. Unreimbursed,

b.. Directly connected with the services,

c.. Expenses you had only because of the services you gave, and

d.. Not personal, living, or family expenses.

Table 2 contains questions and answers that apply to some individuals who volunteer their services.

END QUOTE

You may even be able to deduct the mileage to get from your home to the airport -- either actual expenses or 14 cents a mile.

Let's see what others say. Maybe I'm too generous :). =============== If the out-of-pocket expenses exceed $250/year to a single charity, you still have to get the acknowledgement letter from the charity that indicates the expenses were incurred for their purpose.

Yes, sorry for the error.

Another complication is that the volunteer work is in early January 2013, but I will be paying the expenses in 2012. In this case, can I deduct the expenses in 2012 for volunteer work that is conducted in 2013, if I pay the expenses in 2012?

IRC 170 just says

(j) Denial of deduction for certain travel expenses No deduction shall be allowed under this section for traveling expenses (including amounts expended for meals and lodging) while away from home, whether paid directly or by reimbursement, unless there is no significant element of personal pleasure, recreation, or vacation in such travel.

It does not spell out explicitly that the deduction is denied when it is for expenses of a dependent. Maybe there are court cases on the issue.

Something is extremely fishy here. The IRS publishes a definitive list of public charities, and there is no charity named medlife. The contact address for medlifeweb.org says it's in Bangor ME, and a search of the 183 charities in Bangor didn't turn up anything that looks like them.

So unless they are a subsidiary of a charity with a different name, they're not who they say they are. Any legitimate charity is happy to tell you their legal name, their tax status, and send you a copy of their current Form 990 public tax filing.

R's, John

OK, The Schedule A Instructions include:

Contributions You Can Deduct Contributions can be in cash, property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organizations described earlier.

Gifts of $250 or more. You can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the information in (1) and (2) next.

1. The amount of any money contributed and a description (but not value) of any property donated.
2. Whether the organization did or did not give you any goods or services in return for your contribution.

Contributions You Cannot Deduct Travel expenses (including meals and lodging) while away from home, unless there was no significant element of personal pleasure, recreation, or vacation in the travel.

So it seems to me my daughter's registration fees, airfare, and other expenses are potentially deductible, provided the organization provides a statement for each component above $250 with items 1 and 2 above. No part of her trip is vacation, pleasure, or personal time. If I pay these expenses, can I claim the deductions? It's not worth anything for her to claim the deductions since as a full-time student her income is less than the standard deduction.

===============No. For out of pocket expenses, it's if the TOTAL for the YEAR exceeds $250. Tax Court Memo 2002-232.

Actually the IRS list is not definitive. There are some organizations that existed before the IRS list (or even before the IRS started approving nonprofits), and they are apparently grandfathered in and are not on the list.

In this case their website says, "MEDLIFE is currently in the process of becoming an approved 501(c)(3) non-profit organization. Until that process is complete, all checks processed through our account at the University of Maine foundation are tax-deductible."

___ Stu

Sorry for jumping in late on this one....

You can not deduct expenses you pay for your daughter for her to volunteer her services to a recognized charity. You are effectively making a gift to your daughter. Just gift her the cash and let her pay her own way assuming she can benefit from the tax deduction (i.e., she has a tax liability and itemizing her deductions can provide a tax beenfit).

Assuming the website is correct, then under the 50/50 plan, you could deduct the 50% of the payment that goes to the Medlife Fund.

Where did you find that statement? I looked everywhere and couldn't find it. That would be sufficient to satisfy me since contributions made to organizations in the process of applying for 501(c)3 status are deductible as if the application were already approved.

Ira Smilovitz

That would be sufficient to

for 501(c)3 status are

I know that approval (if done early enough in an organization's existence) is retroactive to the organization's founding, but if the

501(c)3 status is ultimately denied are the contributions still deductible?

Seth

That would be sufficient to

applying for 501(c)3 status are

If the application is denied, the prior contributions become non-deductible. See

4254,00.html Ira Smilovitz

No. However in this case the organization is using a fiscal agent that (presumably) already has its 501(c)(3) status. So contributions are to the agent, which then sends them to or expends them for the benefit of the incohate nonprofit.

___ Stu

I got it from the FAQ on their website:

___ Stu

If the application is denied, the prior contributions become non-deductible. See

4254,00.html=============================I would object to that: They can't "become non-deductible" because they were not deductible to begin with. Technically, deductions become deductible when the status is approved, provided that they were made AFTER the date of the application on Form 1023.