GIVE Act

Information from Independent Sector released on July 1, 2011.

Last week, you may have seen the IRS announcement that the revised standard mileage rates were increased due to rising fuel costs. For business use of an automobile, the rate increased to 55.5 cents per mile and for use of an automobile as a medical or moving expense, the rate went up to 23.5 cents. Unfortunately, the mileage rate for use of an automobile for charitable purposes -fixed by statute and unchanged since 1997 - remains 14 cents.

IS has been contacted by Senator Ben Cardin (D-MD), who is planning to reintroduce the Giving Incentives for Volunteers Everywhere (GIVE) Act to remove the fixed rate for the volunteer mileage deduction. The legislation would authorize the IRS to set a volunteer mileage rate that is no less than the current rate for medical mileage expenses and that adjusts in response to rising gas prices and economic conditions.

To make the case for the legislation, Senator Cardin has asked us to share with his office examples that demonstrate why an adjustment to the mileage rate is so important for your work, your missions, and the people you serve. We hope you´ll help by sending us stories or examples of the impact the volunteer mileage deduction has on your organization. Please send stories or examples by Friday, July 8 if possible, to Geoffrey Plague at Independent Sector at geoffp@independentsector.org so they can respond to the Senator´s office. Let him know if you have any questions or concerns.

CongressionalAnalysis on Charitable Mileage Tax Deduction and Reimbursement Rate

On January 25, 2010, the Congressional Research Service released a Report analyzing the current volunteer mileage rate tax deduction law and four legislative proposals dealing with the statutory rate (14 cents per mile) which taxpayers can deduct if they drive their own vehicle for charitable purposes. The report addresses three questions for Congress to consider: whether the rate should be set by statute or by the IRS; where that rate should be set in relation to the higher deduction rates for business use and for medical or moving use of vehicles; and whether mileage expenses reimbursed by the charity should be treated more favorably than unreimbursed expenses. CRS Report R40434, Charitable Standard Mileage Rate: Considerations for the 111th Congress, by Nonna A. Noto