My kids started school today and already the cry for volunteers has started. I’m not complaining because I get it. Schools are increasingly the target of cuts in spending (deserved or not is another question) and as a result, they are in a scramble to make up for missing programs, teacher shortages, and funding.
Fortunately, at our school, there are wonderful parents who are willing and able to volunteer their time. Time after time, parents step up to make cookies for the bake sale, coach sports programs after school, weed and maintain the school grounds, put up bulletin boards, work the book fair, and more.
In return, those parents get the gratitude of fellow parents, teachers, and school staff. They get a better, community-oriented school. They might also get some warm fuzzies (and maybe some hugs) for helping out. What they don’t get is a tax deduction. This is because the value of your time spent volunteering for charitable organizations is never deductible. Ever. This is true even if you can clearly value your time. Trust me. I might charge a clearly documented flat fee for helping non-profits obtain tax-exempt status with IRS but when I helped our local green committee get tax-exempt status, I was not entitled to a charitable deduction for my time. The IRS does not allow a charitable deduction for volunteering your services.
The IRS does understand, however, that volunteering your time often comes with a price. As such, out of pocket expenses relating to volunteering for charitable organizations are deductible on your Schedule A as a charitable deduction so long as you itemize. To qualify, those expenses must be:
- unreimbursed;
- directly connected with the services;
- expenses you had only because of the services you gave; and
- not personal, living, or family expenses.
An obvious example of out of pocket expenses relating to providing services for a charitable organization is the cost of transportation. You can either deduct the actual costs of gas and maintenance related to your travel so that you can perform services or you can claim the standard mileage rate – which, sadly, remains at 14 cents per mile for charitable activities – to figure your contribution. No matter which method you use (mileage or actual), you can still deduct parking fees and tolls.
You can also claim travel expenses while you are away from home performing services for a charitable organization, assuming that the expenses are related to the services and not for personal use – you can’t write off the class trip just because you always wanted to go to Disney. Travel expenses include air, rail, and bus transportation (as well as expenses for your car); taxi fares or other costs of transportation between the airport or station and your hotel; the cost of lodging and the cost of meals.
If you buy unreimbursed uniforms or other related clothing as part of your charitable service, you can deduct those costs. Be aware, however, that the general rule on those are that the uniforms must be worn only while volunteering and are otherwise not suitable for everyday use. That means that the cool school logo tee shirt that you wear occasionally to go shopping doesn’t count – even if your kid really did make Student of the Month.
Any other supplies or prizes that you buy to be used in the performance of your services should likewise be deductible so long as they meet the criteria outlined above. This might include, for example, decorations for the school bulletin board, pizza for the traveling chess club and sheet music for the band. Get receipts and, ideally, have the school clearly document that your expenses were directly related to your services as a volunteer.
Of course, use some common sense here. Taking your kids to and from school is not a deductible expense even if you stop by the home and school office to say hello to your colleagues. Attending ballgames and concerts in order to cheer your child on is likewise not deductible. Also not deductible? Sipping on a coffee at a meet and greet or bringing in cupcakes for the class on your child’s birthday. Those might be great things to do but they’re not charitable. Performing volunteer services for your school should meet the same standards as you would expect at any other charity: we’re talking real work. Volunteering to lead after school clubs, coaching school sports programs and stuffing envelopes for the home and school (PTA) should count.
Keep good records when you travel or otherwise spend money out of pocket – that means receipts and travel journals. Just as when you’re making in-kind or cash contributions, documentation is key for out of pocket charitable expenses claimed as deductions.
Of course, all of this running around has to make a parent weary. And not that I’m advocating drinking (*ahem*) but if one were to want to wind down with a nice glass of wine, it would sure be nice. To help out, I’m giving away a wine refresher – the Ravi Solution will help parents “wine” down and relax. The fastest and smallest wine chiller on the market today, Ravi cools wine at the very moment it’s served. Just chill the device for 6 hours before use then pour a perfectly chilled glass of your favorite wine (white, red, or rose) and enjoy!
It’s easy to enter. Just post a comment below about your favorite volunteering moment. It could be reading at your local school, coaching Little League, taking the Girl Scouts camping, giving blood… the possibilities are endless.
I’ll choose one winner randomly (using a number generator) out of all of the qualifying entries.
Here are some more rules because, as you know, I’m a lawyer and I like rules:
- Entries must be posted in the comments section for this blog post in the space below by 1:59 p.m. EST on September 7, 2011.
- Don’t panic if your comment doesn’t show immediately. If it goes to moderation because, for example, you’re new here, the time stamp on your comment is what counts.
- I love my Twitter followers and my Facebook fans but for this particular giveaway, tweets and Facebook comments will not be counted. Ditto for emails. You must leave your comment on the blog at this post.
- You can enter as many times as you like but you must leave a different answer each time you comment.
- Offensive comments or comments that otherwise violate the comment policy will be deleted and will not be considered valid for purposes of the contest.
- Pingbacks and other links will be disregarded for purposes of the contest.
- You must include your full name and your email address with your entry, just enter it when you register to comment. I won’t publish your email address but I do need contact information for the winning entry.
- Due to shipping considerations, only United States addresses, please. Sorry, Canada, eh?
- I respect your privacy and I will not send you anything unrelated to your entry in this contest.
- By entering the contest, you agree that I may post any part or all of your submission including your name as a part of the contest announcements or promotions, with the exception of your email address.
Comment away!