IRS Charitable Mileage Rate

Take Action: Raise the Charitable Mileage Rate.  Volunteers who use their own cars for charitable service can only deduct 14 cents per mile from their Federal income taxes.  The IRS standard business mileage rate just increased, but the charitable rate has not increased in ten years. High gas prices are hurting charities, volunteers and those who rely these services. Programs like Meals-on-Wheels are facing critical volunteer shortages throughout the country. H.R.2020 would raise the charitable mileage rate from the current 14 cents per mile to the business rate (currently 58.5 cents) and eliminate the disincentive for charitable volunteerism. Contact your members of Congress.  Urge their support for H.R.2020.

Read testimonials on how the high cost of gas is impacting volunteerism.
PANO Updates

IRS mileage rates since 2001 (cents per mile): 

 *** The business, medical and moving rates were increased as of July 1, 2008 to reflect rising fuel costs. 
** In 2006 the Katrina-related charitable rate was 32 cents per mile
* In 2005 the business, medical, moving and Katrina-related charitable mileage rates were as follows:

•  From Jan. 1, 2005 to Aug 31, 2005:    The business rate was 40.5 cents per mile.  The medical and moving rate was 15 cents per mile.   

• From Sept. 1, 2005 to Dec. 31, 2005:  The business rate was 48.5 cents per mile. The medical and moving rate was 22 cents per mile. 

•  From Aug 25, 2005 to Aug 31, 2005:   The rate for miles driven for charities providing Hurricane Katrina-related relief was 29 cents.

• From Sept.1, 2005 to Dec.31, 2005:    The Hurricane Katrina-related rate was 34 cents per mile.         

PANO Updates
 

10/9/08 Congress Fails to Raise the Volunteer Mileage Rate. Over the past 8 months, PANO spearheaded the nationwide effort to raise the rate that volunteers who use their own vehicles for charitable service, can deduct from their personal income taxes.  The Standard business rate is currently 58.5 cents per mile, but the volunteer rate is only 14 cents per mile and has not increased in over 10 years.  Many Americans can no longer afford to volunteer due to high gas prices.  Volunteers need relief. The Charitable Mileage Deduction Equity Act, S.3421 by Senator Bob Casey (D-PA) and H.R.2020 by Congressman Todd Platts (R-19-PA) would set the volunteer mileage rate at the business mileage rate. The two rates would be the same: 58.5 cents per mile adjusted by the IRS when necessary.

The sudden financial crisis on Wall Street, and the $700 billion bailout wiped the volunteer mileage rate and many other worthy bills off the table from consideration in Congress.  In the end, Congress failed to vote on the Charitable Mileage Deduction Equity Act, the GIVE Act, the revised GIVE Act, or any other form of comprehensive legislation to address the unfair treatment of America’s volunteers. The only exception was Senator’s Grassley’s temporary mileage rate increase to benefit Midwest States (most notably for his own State of Iowa.) 

While we are disappointed that the Congress failed to pass legislation raising the volunteer mileage rate, our efforts has significant results.  In just 6 short months we brought national attention to this issue, raised its profile in Congress and set the stage for future action.  National Council of Nonprofit Associations (NCNA) described it as follows: “A state association saw this national volunteer crisis brewing and got others involved in the struggle to fix it. Initial leadership on this issue by the Pennsylvania Association of Nonprofit Associations (PANO) persuaded our national organization – the National Council of Nonprofit Associations – to become deeply involved, which in turn led to 40 state associations and hundreds of other nonprofits across America – from AARP and the American Red Cross to Independent Sector and United Way of America – joining forces, all in less than six weeks.  The state association network rallied quickly to support PANO and NCNA, not only speaking out officially by signing onto a joint endorsement letter, but also by rallying hundreds of our members across the nation to join that endorsement letter.”  Our work helped thousands of nonprofits across the country find their voice, and demonstrated the value of our national network of State Associations.  

Rarely is new legislation passed in the same legislative session in which it is first introduced.  To the hundreds of advocates who volunteered on this initiative, we are honored to have worked with you, and we look forward to working with you in 2009.  For PANO member organizations and for the 60 million Americans who volunteer each year, we will continue this fight until volunteers receive the parity and respect that they deserve, or until there is no longer a need for charitable volunteerism in America —whichever comes first.

9/24/08 A new bill was introduced in the US Senate to would raise the volunteer mileage rate from the current rate of 14 cents per mile to 27 cents.  The new Schumer/Ensign/Cardin/Snowe “GIVE Act” would raise the volunteer mileage rate to an unspecified rate “not less than” the medical mileage rate (currently 27 cents per mile). It would be accompanied by a letter directing the IRS to set the rate at the medical mileage rate.  The new bill would also exempt from taxable income mileage reimbursements received by a volunteer for any amount up to the standard business rate.  It also includes a “maintenance of records” requirement that will be established later through regulations.  Independent Sector and NCNA are supporting this new GIVE Act.  It may represent the last chance to raise the rate before congress adjourns for the year. PANO and the organizations in our coalition have remained supportive of the “Charitable Mileage Deduction Equity Act” S.3421/H.R.2020 to raise the volunteer rate to 100% of the business rate.  We have made no decision thus far to endorse the new 27 cent bill.  Even if the new GIVE Act becomes law, we will continue to push for a volunteer rate above the 27 cent.  Our effort to raise the volunteer mileage rate made this issue of priority for both the nonprofit community nationwide and for Congress.  In just 6 months, tens of thousands of nonprofits across the country found their voice; found new networks; and found the knowledge that change is not only imperative, but possible. 

9/2/08 Today, Senator Charles Grassley (R-IA) (Ranking Member of the US Senate Finance Committee) announced that he will co-sponsor the Fair Deal for Volunteers Act of 2008 (S.3246), the volunteer mileage bill introduced by Senators Benjamin Cardin (D-MD), Barbara Mikulski (D-MD) and Olympia Snowe (R-ME).  Additional cosponsors include Senators Maria Cantwell (D-WA) and Patrick Leahy (D-VT). S.3246 does not choose a particular rate.  It would likely raise the current 14 cents per mile rate to only 27 cents.  While Grassley and others now recognize the need to raise the volunteer mileage rate, the Cardin bill (S.3246) fails to provide sufficient relief to volunteer drivers.   

This is a major development.  The Cardin bill (S.3246) is a good start, but it’s not nearly enough to fix the problem. Grassley’s support for the Cardin bill could derail the effort to raise the volunteer mileage rate to 100% of the standard business mileage rate or even to 70%.   

We must redouble our efforts.  We need to  convince the Senators from Maryland, Maine, Iowa, Vermont and Washington that S.3246 is a good start, but not what we need.  We must also push for additional co-sponsors to the Charitable Mileage Deduction Equity Act (S.3421) by Senator Bob Casey (D-PA) and (H.R.2020) by Congressman Todd Platts (R-19-PA). 

PANO is leading a coalition in support of legislation by Senator Casey (S.3421) and Congressman Platts (H.R.2020) to raise the volunteer mileage rate to 100% of the standard business mileage rate (currently 58.5 cents per mile).  Including Congressman Platts and Senator Casey, only Congressmen Carney [PA-10], Gerlach [PA-6] and English [PA-3] cosponsored legislation on the volunteer mileage rate. That leaves us with 15 Pennsylvania members of Congress and one US Senator (Specter) who have neither cosponsored nor expressed opposition.  So if you have not already contacted your member of Congress, please contact them now.  If you sent an email, then follow-up with a phone call.  Please contact your members of Congress now.  

Attached is the September 2, 2008 Grassley Memo expressing his support of the Cardin bill.  Pasted below is the latest Action Alert urging Congress to raise the volunteer mileage rate and the editorial that ran in the Harrisburg Patriot-News on Sunday, August 17, 2008.  Please forward the Alert!  Share it with your network.  Contact the media.  Join our Coalition!.

Grassley’s support for the Cardin bill poses a major challenge. Only by working together can we fix this outdated tax law and grant substantive relief to volunteers and the organization that rely on them.

Please feel free to contact me at david@pano.org or at (717) 236-8584.

8/1/08 Breaking News:  This morning, Senator Robert Casey (PA) introduced a new bill in the US Senate (S.3421) to raise the Volunteer Mileage Rate.  The Casey bill (like H.R.2020 in the House) would raise the current 14 cents per mile Volunteer Mileage Rate to the Standard Business Mileage Rate (currently 58.5 cents ).  

Over the past few months, PANO has lead a coalition  to raise the Volunteer Mileage Rate.  We are working with Congressman Platts and Senator Casey to raise awareness of these issues and move these bills forward in Congress. We appreciate your support and ask for your continued support as we move to the next level.

The IRS recently raised the Standard Business Mileage Rate to 58.5 cents per mile to reflect the true cost of driving. Yet the Charitable Mileage Rate for volunteers who use their own vehicle for 501(c)(3) nonprofit service remains at 14 cents. Unlike the Standard Business Rate which is variable and has steadily increased over time, the Volunteer Rate is fixed under §170(i) of the Internal Revenue Code, and has not increased in over 10 years.

Also introduced today in the Senate was a bill by US Senator Schumer (NY) and John Ensign (R-NV) to raise the Volunteer Mileage Rate to 70% of the Standard Business Mileage rate.  NCNA, Independent Sector, and a handful of national organizations are indorsing Schumer bill to raise the volunteer rate to “70% of the Business Rate”.  PANO was involved in these negotiations, but we can not endorse the Schumer bill.

The issue is far from settled.  When Congress returns in September, the Volunteer Mileage Rate will be addressed again. It could become part of a larger tax package.  There is no guarantee that the 70% rate of the Schumer bill will not become 60% or 50% as the bill moves through Congress.

PANOs coalition will continue to support the Casey bill (S.3421) and the Platts bill (H.R.2020) with its 25 cosponsors including Congressman Chris Carney (D-10-PA).  We will work through the August recess to build our coalition to raise the Volunteer Mileage Rate to 100% of the business rate. 

Pennsylvania’s 2.8 million volunteers, provide 347 million volunteer hours annually.  The value of those services to Pennsylvania is $6.8 billion each year.  Our volunteers deserve 100% of the Standard Business Rate, not 50% or 70%.  Volunteers should not be treated as second class citizens.

Join our coalition: contact David Ross, PANO Public Policy Officer at david@pano.org. 

Action Alert Contact your members of Congress. Urge them to raise the Volunteer Mileage Rate to the rate that businesses receive.  

Read the Blog

Senator Robert Casey (PA) 
Press Release
Congressman Todd Platts (R-19-PA) 
http://capwiz.com/pano/webreturn/?url=http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.2020:  

7/30/08 Raise the Volunteer Mileage Rate. PANO is working with Congressman Todd Platts’ (R-York) and a coalition of charities across the country to raise the IRS Charitable Volunteer Mileage Rate and provide relief for volunteers. HR2020 would raise the Volunteer Mileage Rate from the current 14 cents to the Standard Mileage Rate that businesses receive (currently at 58.5 cents). With only three days remaining until the Congress recesses for the summer, Senators Schumer (D-NY) and Ensign (R-NV) are considering introducing a new bill to raise the Volunteer Mileage Rate to only 50 percent of the standard business mileage deduction, or a rate of about 28 cents per mile. the rate would be adjustable, by the IRS, but the rate is just too low. In addition, there would be no exclusion from taxable income, for any reimbursement a volunteer receives above the volunteer rate.

Read the Blog on HR2020 at http://nonprofitcongress.wordpress.com/.

7/16/08  Raise the Charitable Mileage Rate. With gas prices at record highs, organizations that rely on volunteers to drive their own vehicles are facing critical volunteer shortages.  American’s are choosing not to volunteer.  They simply can’t afford it. Over the past few months, PANO led the sector nationwide to raise the Charitable Mileage Rate. Working with Congressman Platts, H.R.2020‘s prime sponsor, PANO organized a national coalition including NCNA, its State Associations, and now Independent Sector. The effort to raise the Charitable Mileage rate from 14 cents to a more reasonable level is finally having an impact.  A number of bills are now pending in Congress including S.3032 (Schumer-NY) and H.R.6283 (Lewis-GA). These bills would raise the Charitable Mileage Rate to a 40 cent fixed rate (instead of the 58.5 cent rate of H.R.2020), and temporarily increase the Standard Business Mileage Rate to 70 cents.

Action Alert. Contact your member of Congress.  Urge them to raise the Charitable Mileage Rate and eliminate the disincentive for volunteerism.  If 14 cents is the value that our society places on for volunteerism, then the charitable mileage rate is a nation embarrassment.

Effort to raise the Charitable Mileage Rate is Energize, Inc's "Hot Topic" for July 2008.  

* Hot Topic: http://www.energizeinc.com/hot/2008/08jul.html.
* Response: http://www.energizeinc.com/hot/2008/08jul-res.html.

6/23/08 The IRS announced that it will increase the Standard Mileage Rate used to calculate the deductible cost of operating an automobile for business, medical, or moving purposes.  As of July 1, the Standard Business Mileage Rate will increase to 58.5 cents per mile and the medical and moving rate will increase to 27 cents for the remaining six months of 2008. All other provisions of Rev. Proc. 2007-70 remain in effect.  The charitable mileage rate however, will remain at 14 cents.  Unlike the business rate which is variable and set by the IRS, the charitable rate is fixed under §170(i) of the Internal Revenue Code at 14 cents.
 

According to IRS Commissioner Doug Shulman. “The IRS is adjusting the standard mileage rates to better reflect the real cost of owning an operating an automobile." A recent AAA Report calculates the costs of operating a new vehicle on average at 54.1 cents per mile.  If you include depreciation, insurance and other variables though, the true cost of owning and operating a motor vehicle is closer to 70 cents.  Yet the 14 cents per mile charitable rate has remained at the same rate since prior to 2001, when gasoline prices were much lower.

• IRS News release IR-2008-82 (June 23, 2008)

•   Announcement 2008-63

•   Rev. Proc. 2007-70

6/23/08 Effort to Raise Charitable Reimbursement Rate Builds Momentum in Congress.  On Friday 6/20/08, Congressman Platts and Petri’s sent a letter to House Ways & Means Committee Chairman Charles Rangel requesting that they hold a Committee hearing on both H.R.2020 (Rep. Platts’ bill) and H.R.1827 (Rep Petri’s bill). 

Both bills would set the charitable mileage deduction at the same variable rate as the business travel, with minor differences between them. Both bills are currently in the House Ways & Means Committee. The letter was signed by Representatives Platts [PA-19]; Boswell [IA-3]; Conaway [TX-11]; Miller [NC-13]; Putnam [FL-12]; Shays [CT-4]; Etheridge [NC-2]; Matsui [CA-5]; Shuler [NC-11]; Petri [WI-6]; Campbell [CA-48] and Foxx [NC-5]

National Public Radio interview of Meals-on-Wheels Association of America http://marketplace.publicradio.org/display/web/2008/06/09/charities.

6/15/08 The Hickory, NC, By Andrew Mackie and Sarah Newell, on the effect of gas prices on volunteers driving for nonprofits.

5/12/08 Raise the IRS Charitable Mileage Rates. High Gas prices are Discouraging Volunteerism. HR2020 would raise the IRS charitable mileage rate.  For more information, visit http://capwiz.com/pano/issues/bills/?bill=11380066.

HR2020

Raising the charitable mileage rate from the current 14 cents per gallon, to the business mileage rate currently at 50.5 cents per gallon, would aid organizations that rely on volunteers that drive their own vehicles.  With gas approaching $4.00 per gallon, and it costs between 50 and 70 cents for a car to drive a mile, helping the less fortunate or volunteering on a nonprofit board should be valued above 14 cents.  HR2020 will reduce this institutionalized disincentive for charitable volunteerism.  Please urge your members, your peers and groups that you serve to contact their members of congress.  What is the value that our society places on volunteerism?

INews on this issue:

• 4/21/08 Rising Fuel Costs Pinch Charities, by Jerry Carnes, WXIA-TV Atlanta.
  http://www.11alive.com/news/article_news.aspx?storyid=114746 
• 4/14/08 Economic downturn causes shortages in charitable services, by John Blake, CNN. http://www.cnn.com/2008/US/04/18/charity.shortage/index.html 
• 4/14/08 Rising gas prices hurt Meals on Wheels volunteers: Foundation to match donations in April, Binghamton Press & Sun-Bulletin. www.pressconnects.com/apps/pbcs.dll/article?AID=/20080414/COLUMNISTS01/804140313/1022/COLUMNISTS 
• 4/10/08 Rising Costs Hurting Meals on Wheels High food, fuel prices hurting charity's ability to help seniors; Gasoline and food charges hurt the charity's ability to help, and hundreds sit on a waiting list for services. by Chris Wellander, Orlando Sentinel.
  http://www.orlandosentinel.com/features/food/orl-orwheels1008apr10,0,5284438.story 
• 2/7/08 Bracing for Tough Times: Many charities feel vulnerable as economy slips, by Holly Hall and Sam Kean, Philanthropy, http://www.philanthropy.com/free/articles/v20/i08/08000601.htm 
• 5/25/07 Gas Biting Into Meals on Wheels: Non-profits are also feeling the pinch, by Valerie Hoff; WXIA-TV Atlanta. http://www.11alive.com/news/article_news.aspx?storyid=97627 
• 5/9/07 Gas price increases hurt charities, (PA Sen. Casey mentioned), KTRV FOX 12 news, Boise.
  http://www.fox12news.com/Global/story.asp?S=6434838 
• 3/19/00 Meals on Wheels pinched at the pump: Surging gas prices force volunteers to cut back their driving time, by Andrew Meacham, St. Petersburg Times. http://www.sptimes.com/News/031900/TampaBay/Meals_on_Wheels_pinch.shtml

11/27/07 IRS Standard Mileage Deduction Rates to Increase on January 1, 2008. The IRS released the new Optional Standard Mileage rates used to calculate the deductible costs of operating a vehicle for business, charitable, medical, or moving purposes. Beginning January 1, 2008, the standard mileage rates for the use of a car will be 50.5 cents per mile if driven for business, 19 cents per mile if driven for medical or moving purposes, and 14 cents per mile if driven in service of a charitable organization. In 2007, the rates were 48.5 cents for business, 20 cents for medical and moving, and 14 cents for charitable service. For more information go to http://www.irs.gov/newsroom/article/0,,id=176030,00.html. 

background, experience, education, and professional memberships. The IRS and Treasury Department request comments on future guidance on the new provisions. Until regulations are issued, taxpayers may rely on Notice 2006-96 to comply with the new provisions. For a copy of IRS Notice 2006-96 go to http://www.irs.gov/charities/charitable/article/0,,id=163650,00.html.  For a copy of this Notice 2006-96 go to http://www.irs.gov/pub/irs-drop/n-06-96.pdf.

IRS increases 2007 optional standard mileage rate. On November 1, 2006, the Internal Revenue Service increased the 2007 optional standard mileage rate used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2007, the standard mileage rates for the use of a car, vans, pickups or panel truck, will be 48.5 cents per mile for business miles driven, 20 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service to a charitable organization. The prior 2006 rates were 44.5 cents per mile for business miles and 18 cents per mile for medical or moving purposes. The rate for charitable miles is set by statute [§170(i)]. The IRS raised this rate primarily due to higher prices for both vehicles and fuel in 2006. A copy of IRS Revenue Procedure 2006-49 is available at http://www.irs.gov/pub/irs-drop/rp-06-49.pdf.