THE JOY OF GIVING

Most people know that they can deduct charitable contributions made by cash, check, or credit card if they itemize deductions. 

Many people know that donating property to charities can also result in a tax deduction.  You can deduct the fair market value of used clothing, toys, or furniture given to Goodwill or Salvation Army. (See Donating Cars to Charity)

Few people, however, deduct out-of-pocket expenses and mileage associate with volunteer work for charitable organizations. In order to be deductible, the out of pocket costs must:

Here's how it works:

Julia is a leader for her daughter Ashley's Girl Scout troop. She volunteers as a chaperone to drive her minivan with the Girl Scouts on overnight camping trips.  She also makes phone calls to raise money for scholarships for members of the troop who could not otherwise afford to go.  

 Julia’s Deductible Expenses:

·         Cost of buying and maintaining uniform

·          Long-distance phone calls used in fund raising

·          Travel expenses (See standard mileage rate for charitable deduction)                              

·         Food and supplies bought for the camping trip                             

Julia’s Nondeductible Expenses:

·         Cost of keeping dog in kennel during weekend camping trip (a personal expense, not directly for charity)

·         Ashley’s uniform (personal benefit to her daughter)

·         Purchase of 5 boxes of Girl Scout cookies (not a donation, a personal benefit and item of value received in exchange)