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IRS Standard Mileage Tax Deduction Rates for 2010 (as
of Jan. 1, 2010)
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Standard Mileage Rate |
2010 Rate |
2009 Rate |
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Business |
50 cents per mile |
55 cents per mile |
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Medical / Moving |
16.5 cents per mile |
24 cents per mile |
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Charitable * |
14 cents per mile |
14 cents per mile |
1/25/10
Congress Releases New Analysis 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.
The Rates:
Effective January 1, 2010, the IRS lowered the medical and
moving standard mileage rate from 24 cents to 16.5 cents per
mile and the business standard mileage rate from 55 cents to 50
cents per mile. In contrast, the third rate, the charitable
(volunteer) standard mileage rate, which is set by statute under
Section 170(i) of the Internal Revenue Code, remained at 14
cents per mile, where it has been since 1998. Read the press
release at
http://www.irs.gov/newsroom/article/0,,id=216048,00.html.
For details on the standard mileage rates read Revenue
Procedure 2009-54 at
http://www.irs.gov/pub/irs-drop/rp-09-54.pdf
The Campaign:
In 2008 a national effort was launched to increase the volunteer
mileage rate. This was spearheaded by David A. Ross, J.D. of
the Pennsylvania Association of Nonprofit Organizations based on
a bill by Congressman Todd Platts (PA-R-19). Within 6 months,
the coalition grew to thousands of charitable organizations,
volunteer groups, and individuals. Eventually raising the
volunteer mileage rate received support from leaders in the US
House and Senate. By February, 2009 a managers’ amendment to
raise the volunteer rate was to be included in the American
Recovery and Reinvestment Act (the Stimulus bill), by the
Chairman of the U.S. Senate Finance Committee. During Conference
Negotiations however, the amendment was blocked and never
offered.
The Result:
While the initiative did not achieve its goal of raising the
volunteer or charitable mileage rate tax deduction, it gained
national attention for the issue and came closer to raising the
rate than any prior effort since 1998. In the end, the issue was
placed squarely on the public agenda -- and is in-part the
reason why the latest
CRS Study was conducted.
1/26/10 RSVP Announces New Funding
for Volunteers and Nonprofit Capacity Building. The
Corporation for National and Community Service just announced
that it will provide $2.7 million in new grant funding to
increase the number of RSVP volunteers. 20% of volunteers will
be placed in assignments that enhance organizational capacity in
the community, such as pro bono planning support, recruiting and
coordinating community volunteers, or assisting with resource
development. RSVP engages volunteers age 55 and older to assist
seniors and veterans with independent living support, including
respite for family or informal caregivers, to assist children
academically to succeed in school, and help vulnerable
populations to make their homes more energy efficient.
Interested organizations must submit a Concept Paper by
February 22, 2010, 5:00 EST. Read the Press release at
http://www.seniorcorps.gov/about/newsroom/releases_detail.asp?tbl_pr_id=1652
The full NFOA is posted at
http://www.seniorcorps.gov/for_organizations/funding/nofa_detail.asp?tbl_nofa_id=78.
11/19/09 PennSERVE: the
Governor’s Office of Citizen Service has issued a request for
applications (RFA#-2010-ACS-01) for potential 2010-11
AmeriCorps*State programs in the Commonwealth. Consistent with
PennSERVE's mission, the funding is designed to help
organizations strengthen Commonwealth communities by
implementing innovative service programs that address a
compelling community need through the use of volunteers. This
national service grant opportunity is available to local
community and/or faith-based organizations. If you think your
nonprofit may be interested in operating an AmeriCorps program,
you are encouraged to apply. To access the grant application
information, visit
www.pennserve.state.pa.us and click on the link for "PennSERVE
RFA for 2010-2011 AmeriCorps Grants." The deadline for
submission is December 3, 2009.
10/10/09 PennSERVE is pleased to
announce its training and technical assistance workshop being
offered for those interested in the 2010-2011 Request for
Applications for AmeriCorps funding. The workshop will be
conducted on Wednesday, October 28, 2009 in Harrisburg at the PA
Department of Labor and Industry from 1:00 pm. until 3:00 p.m.
This workshop is designed to give potential new and re-competing
applicants an overview of AmeriCorps National Service and the
process for applying for funding to operate an AmeriCorps
program beginning August 2010. The workshop is free and open to
any 501(c)(3) nonprofit or governmental agency, including, but
not limited to: community or faith-based organizations,
municipalities, educational institutions, and/or local
affiliates of national nonprofits. Attendance at the workshop is
not required for an organization to submit an application, but
it is encouraged. All applications for new and re-competing
PennSERVE AmeriCorps programs are due to the PennSERVE office by
3:00 p.m. Thursday, December 3, 2009. The 2010-2011 application
will be available through the PennSERVE website:
www.pennserve.state.pa.us and the Pennsylvania Bulletin in
early October. Hard copies will also be available at the
workshop. To RSVP for the workshop, please advise Jonie Buggy at
the PennSERVE office by telephone 717-772-5035 or email
jbuggy@state.pa.us.
AmeriCorps Opportunity Workshop Details: Location: E-100
Conference Room, First Floor, L & I Building, 651 Boas Street,
Harrisburg, PA 17121 Date: Wednesday, October 28, 2009 Time:
1:00 p.m. – 3:00 p.m. Directions & Parking: Directions may be
obtained through Mapquest or similar website. The Labor &
Industry Building is located at the corner of 7th and Forster
Streets; metered parking is available on the street and hourly
or daily parking is available in the 7th Street Garage located
diagonally across the street. Please do not try to park in the
garage adjacent to the L&I Building; it is for Commonwealth
employees only.
PennSERVE Mission Statement: “To encourage, develop and
facilitate volunteer and citizen community service, which builds
upon the talents, strengths, opportunities and challenges of
people and communities in ways which enhance the quality of life
for all citizens of the Commonwealth of Pennsylvania.”
7/29/09 Preserve Funding For the
Nonprofit Capacity Building Program. PANO and the National
Council of Nonprofits are actively working to prevent the
Nonprofit Capacity Building Program from being de-funded.
Certain members of Congress are looking to defund the program.
Without this funding, there is no program. Without this program,
small to mid-sized nonprofits will continue to struggle to meet
the basic needs of their communities.
Section 198S(g) of the National and Community Service Act of
1990 reserves $5 million per year for the next 5 years for
nonprofits to get the training they need to build their
capacity. The President’s proposed budget uses a
“notwithstanding clause” which essentially eliminates section
198S(g) and defunds our Nonprofit Capacity Building Program for
the coming year.
Earlier this year, PANO, the National Council of Nonprofits,
and State and National organizations from around the country
worked with Senators Grassley (R-IA) and Baucus (D-MT) to
successfully include a new Nonprofit Capacity Building Program
in the Serve America Act. The Serve America Act eventually
passed, and the Nonprofit Capacity Building Program was
authorized.
This was a unique program: the ONLY one in all of federal law
written specifically for “small and midsize nonprofit
organizations.” The Program would provide matching money for
training of nonprofits so they could build their capacity to
better serve their communities. The cost was a relatively small
$5 million each year, for five years. However, during
negotiations, funding for this Program was came from a
reservation of funds in the budget of the Corporation for
National and Public Service.
On Tuesday July 28, the Senate Subcommittee on Labor, Health
and Human Services, Education, and Related Agencies is scheduled
to meet to consider a recommendation from the Office of
Management & Budget that would strip-out the $5 million
reservation of funds from the Corporation’s budget.
Some of the groups that backed the Serve America Act are
asking Congress for “full funding of the President’s budget for
the Serve America Act” (which would wipe us out, since the
President’s budget seeks to de-fund us), while others seek “full
funding of the Serve America Act”; we fully support the latter
concept of full funding for the Serve America Act, but this will
not ensure funding for the Program that we have actively worked
on for five years.
H.R.3293 is expected to voted on by the Senate Subcommittee
on Tuesday 7/28/09, and be voted on by the full Committee on
Thursday, 7/30/09.
Read about the
Nonprofit Capacity Building Initiative.
Read Senator Grassley’s
Press Release.
H.R.3293
7/1/09 PA Launches “Get Help
Now, Pennsylvania” Volunteerism Initiative. In Pennsylvania,
Governor Rendell responded to the President’s call to service
with the “Get Help Now, Pennsylvania” program. From July 7 to
September 11, 2009, an estimated 2000 volunteers at 17 locations
throughout the state will provide free legal and banking
counseling and referrals two days each week to thousands of
struggling Pennsylvanians. These volunteer legal, banking,
mortgage professionals, and financial analysts will provide free
assistance, counseling, and referrals to struggling
Pennsylvanians. These volunteers will not provide personal legal
or banking advice, but they can refer citizens to an appropriate
place for assistance. For more information, locations and times,
call 1.888.799.4557; or visit
www.pa.gov or www.pabar.org.
Read more about “Get
Help Now, Pennsylvania.”
7/1/09
Obama Administration Launches United We Serve Volunteerism
Initiative. On June 22, 2009, the Obama Administration
launched the United We Serve program, a summer-long call to
service from June 22 to September 11, 2009. During the 81 days
of service, United We Serve program hopes to improve the
communities by dramatically increasing the number of Americans
volunteering. The program is also designed to foster a more
reciprocal relationship between the nonprofit sector and federal
agencies by building lasting partnerships. The recession is
having a major impact on nonprofits, and those they serve. Most
organizations are facing revenue shortfalls and decreased
contributions, while the demand for their services continues to
grow. Yet, many charities lack the capacity to meet the
increasing needs of their communities, and at a time when their
communities need them most. Volunteerism can help bridge this
gap, and ensure that nonprofits’ can continue to provide these
important community services. The United We Serve program seeks
to bolster the capacity of organizations through increased
volunteerism. The website
www.serve.gov has been established as a hub for
locating volunteer opportunities as well as registering your own
projects.
3/31/09
Serve America Act Passed by Congress.
The Serve America Act/ GIVE Act (H.R.1388) was passed
by Congress last week and is expected to be signed by the
President any day now. The Act is expected to triple the number
of National Service volunteers and to expand service
opportunities to volunteers at all stages of life. The bill also
includes the Baucus-Grassley amendment to establish a Nonprofit
Capacity Building Program (NCBP). The program provides federal
matching funds for organizations like PANO to provide training
for nonprofits. Although the bill passed, there is no guarantee
of funding. The sector must now focus its efforts on the
Appropriations Committee to ensure that programs like NCBP under
the Serve America Act are adequately funded. For more
information go to Independent Sector
http://www.independentsector.org/programs/gr/National_Community_Service.htm,
and NCN at
http://www.councilofnonprofits.org/?q=policy#ncba.
3/25/09
The Senate to debate The Serve America Act today. Call
your US Senator. S.277 would expand national public service
programs, increase the number of volunteers, and provide funding
to ensure accountability, efficiency and long-term results. One
possible Amendment by Senators Baucus and Grassley (which we
support) would even help nonprofits better utilize volunteers by
setting aside $25 million for volunteer management training of
small and mid-size organizations. But a dangerous anti-advocacy
provision was included in the House version of the bill (The
GIVE Act) last week that would prohibit certain volunteers from
engaging in advocacy or voter registration drives. Some
nonprofits might even be held accountable for the advocacy of
co-located but otherwise unrelated groups. Call Senators Specter
and Casey NOW! Urge their support for the Nonprofit Capacity
Building Amendment to the Serve America Act and their opposition
to any poison-pill or anti-advocacy restrictions. Action
Alert!
3/11/09 Given the Obama
Administration’s focus on public service, the funds provided in
the Recovery Act, Senator Kennedy’s
Serve America Act recently introduced
bills to raise the volunteer mileage rate tax deduction,
pending legislation to reauthorize the Corporation for National
and Community Service, and the House Committee hearing on
February 25, the 4 new service bills introduced as part of
“Service for All Ages” initiative, and the March 10 Senate HELP
Committee hearing on “The
Next Generation of Service,” volunteerism is a major
issue for 2009. A nexus of legislation, initiatives and funding
are building momentum in Congress. Together they will create
more volunteers and more programs. But for this boost in
volunteerism to be sustainable, certain structural issues like
the volunteer mileage rate must be addressed.
Raising the volunteer mileage rate is just as important now
even though gas prices are lower than they were last summer. In
this uncertain economy, one thing is certain: gas prices will
rise again. A volunteer mileage rate deduction fixed by law at
14 cents jeopardizes charities that rely on volunteer drivers,
imposes hardship on volunteers from rural America, and treats
our volunteers as second class citizens. Bills introduced in
2009 include S243 (Cardin), S.285 (Feingold), HR345 (Platts),
HR590 (Petri), and HR524 (Lewis- House version of Cardin’s bill)
Bill links are posted at
http://capwiz.com/pano/issues/bills/. The Platts and
Petri Bills in the House would raise the volunteer mileage rate
to 100% of the business rate (currently 55 cents per mile). Two
volunteer mileage rate amendments were proposed by Senator
Charles Grassley (R-IA) for inclusion in the Stimulus Package.
At the last minute however, neither proposal was introduced.
Without addressing structural issues like the volunteer mileage
rate, all of this activity on volunteerism might be ineffective.
For additional information
http://www.pano.org/publicpolicy/publicpolicy-irs_CRR.php.
The recession is having a major impact on nonprofits. Most
charities are facing revenue shortfalls and decreased
contributions, while the demand for their services increases
sharply. Many charities lack the capacity to meet the increasing
needs of their communities, and at a time when their communities
need them most. Volunteerism can bridge this gap, and help
ensure that nonprofits’ continue to provide important community
services. Let’s hope that the same enlightened statesmen who are
behind these initiatives, are willing to do it right. By not
addressing capacity and other structural issues, like the
volunteer mileage rate, the effectiveness and sustainability of
these bold new initiatives are uncertain.
1/16/09 Senators Kennedy and Hatch
re-introduce the Serve America Act. Senators Ted Kennedy
(D-MA) and Orrin Hatch (R-UT) reintroduced the Serve America
Act, to create new service opportunities for people at all
stages of life. If enacted, S.277 would increase volunteerism,
support innovation and effectiveness in the nonprofit sector,
and support short-term international service opportunities.
S.277 will recruit Americans of all ages to do service work in
health, education, environmental protection and anti-poverty
programs. S.277 will expand opportunities for people to serve
their communities at every stage of life, from students and
working adults to retirees.
The Serve
America Act brings this country one step closer toward the
passage of a comprehensive national service reauthorization
bill. S.277 will build upon the success of the existing
national service programs like AmeriCorps, Senior Corps and
Learn and Serve America (which have not been reauthorized in 15
years). This bill would help strengthen and expand the
government funded service initiatives, stimulate community
volunteerism, and increase accountability and efficiency within
the programs. In addition, S.277 would expand the national
service infrastructure, address critical community needs, and
develop civic competencies in those who participate. S.277 is
posted at
http://capwiz.com/pano/issues/bills/?bill=12521601&size=full.
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