Under federal law, paid employees can be reimbursed 58.5 cents per mile when driving their cars. But volunteers can only deduct 14 cents per mile. This harmful discrimination against nonprofit volunteers must end.
The GIVE Act of 2008, (S. 3429) introduced on a bipartisan basis by U.S. Senators Charles Schumer (D-NY) and John Ensign (R-NV) and now co-sponsored by thirteen (13) other Senators, would eliminate the disincentives that prevent charitable volunteers from doing what they really want to do, which is to help the needy in their communities. NCNA and more than 250 distinguished nonprofits, including AARP, American Red Cross, Catholic Charities USA, Independent Sector, United Jewish Communities, and United Way of America, support this important legislation.
The GIVE Act would 1) raise the charitable mileage deduction from 14 cents to almost 41 cents; 2) eliminate the need for nonprofits to seek new legislation every year by setting the charitable volunteer rate at 70% of the standard business mileage rate as adjusted by the IRS; and 3) exclude from any income tax consequence actual mileage reimbursements made to volunteers. These features not only address economic pain being felt in America’s communities, but also recognize the vital role the nonprofit sector plays in coordinating volunteer efforts to meet human needs.
Unfortunately, momentum is building behind an alternative that is inadequate: S. 3246 (the “Cardin/Snowe/Mikulski” bill), with its new companion bill, H.R. 6854, introduced in the House by Representatives Lewis (D-GA) and Ramstad (R-MN). While this alternative approach would make many of the fixes in the GIVE Act, it would only raise the charitable mileage rate to 27 cents a mile; (or 46% of the standard business mileage rate) as opposed to the GIVE Act’s rate of 41 cents a mile, or 70% of the standard business mileage rate.
Nonprofit volunteers should not be treated as second class citizens, less worthy than business or government employees. Please write your senators immediately to urge them to co-sponsor the GIVE Act today.
