[17804] in APO-L
Re: Tax Exempt Inquiry
daemon@ATHENA.MIT.EDU (dave o'leary)
Sun Nov 30 12:41:40 1997
Date: Sat, 29 Nov 1997 21:14:15 -0400
Reply-To: "dave o'leary" <doleary@CISCO.COM>
From: "dave o'leary" <doleary@CISCO.COM>
To: Multiple recipients of list APO-L <APO-L@VM.CC.PURDUE.EDU>
In-Reply-To: <199711270506.VAA24201@proxy2.cisco.com>
>Date: Wed, 26 Nov 1997 02:06:13 EST
>From: Vivs Scott Laliberte <lalibr@RPI.EDU>
>Subject: Tax Exempt Inquiry
>
> As a tax exempt org, what are the regulations as far as people
>writing off donations of $s or services to APO chapters? Anyone
>out there dealt with this in an official capacity? Technically,
>as I read the docs pointed to before, you need to be a "charitable" group,
>but no place do they define what that is... anyway, lookin for input
> YiLFS
>Vivs
Here is the best doc that I have seen regarding donations of services
and out-of-pocket expenses related to providing services, relating
to Federal Tax law. This version is from 1997 (i.e. 1996 tax year).
Sometimes the details change from year to year, so if you have questions,
make sure you talk with a tax accountant.
Regarding the question of "What is a charitable group?" - if they qualify
as a 501c3, then they qualify, also any church (I know that there are a lot
of very interesting churches out there, but I'm not sure what exactly
qualifies an organization as a church in terms of tax law). There are
also some non 501c3's that apparently qualify, too, but I don't know
much about that.
Specific to Alpha Phi Omega - we are 501c3. So out of pocket expenses
as described in the included document relative to APO can be deducted.
have fun :-/
dave
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Publication No. 526:
Out-of-Pocket Expenses in Giving Services
You may be able to deduct some amounts you pay in giving services to a
qualified organization. The amounts 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.
Table 2 contains questions and answers that apply to some individuals who
volunteer their services.
Table 2. Volunteers' Questions and Answers
If you do volunteer work for a qualified organization, the following
questions and answers may apply to you. All of the rules explained in
this chapter also apply. See, in particular, Out-of-Pocket Expenses in
Giving Services.
Question Answer
I do volunteer work 6 hours a week in No, you cannot deduct the value of
the office of a qualified organization. your time or services.
The receptionist is paid $6 an hour to
do the same work I do. Can I deduct $36
a week for my time?
The office is 30 miles from my home. Yes, you can deduct the costs of gas
Can I deduct any of my car expenses and oil that are directly related to
for these trips? getting to the qualifiedorganization
where you are a volunteer. If you
don't want to figure your actual
costs, you can deduct 12 cents for
each mile.
I am a Red Cross nurse's aide at a Yes, you can deduct the cost of
hospital. Can I deduct the cost of buying and cleaning your uniforms if
uniforms that I must wear? the hospital is a qualified
organization, the uniforms are not
suitable for everyday use, and you
must wear them when volunteering.
I pay a babysitter to watch my children No, you cannot deduct payments for
while I do volunteer work for a qualified child care expenses as a charitable
organization. Can I deduct these costs? contribution, even if they are
necessary so you can do volunteer
work for a qualified organization.
(If you have child care expenses so
you can work for pay, see Chapter
33.)
Underprivileged youths selected by charity. You can deduct reasonable
unreimbursed out-of-pocket expenses you pay to allow
underprivileged youths to attend athletic events, movies, or dinners. The
youths must be selected by a charitable organization whose goal is to
reduce juvenile delinquency. Your own similar expenses in accompanying the
youths are not deductible.
Conventions. If you are a chosen representative attending a convention of
a qualified organization, you can deduct unreimbursed expenses for
travel and transportation, including a reasonable amount for meals and
lodging, while away from home overnight in connection with the
convention. However, see Travel, later.
You cannot deduct personal expenses for sight-seeing, fishing parties,
theater tickets, or nightclubs. You also cannot deduct travel, meals and
lodging, and other expenses for your spouse or children.
You cannot deduct your expenses in attending a church convention if you
go only as a member of your church rather than as a chosen
representative. You can deduct unreimbursed expenses that are directly
connected with giving services for your church during the convention.
Uniforms. You can deduct the cost and upkeep of uniforms that are not
suitable for everyday use and that you must wear while performing
donated services for a charitable organization.
Car expenses. You can deduct unreimbursed out-of-pocket expenses, such as
the cost of gas and oil, that are directly related to the use of your
car in giving services to a charitable organization. You cannot deduct
general repair and maintenance expenses, depreciation, registration fees,
or the costs of tires or insurance.
If you do not want to deduct your actual expenses, you can use a standard
rate of 12 cents a mile to figure your contribution.
You can deduct parking fees and tolls, whether you use your actual expenses
or the standard rate.
You must keep reliable written records of your car expenses. For more
information, see Car Expenses under Records To Keep, later.
Travel. Generally, you can claim a charitable contribution deduction for
travel expenses necessarily incurred while you are away from home
performing services for a charitable organization only if there is no
significant element of personal pleasure, recreation, or vacation in such
travel. This applies whether you pay the expenses directly or indirectly.
You are paying the expenses indirectly if you make a payment to the
charitable organization and the organization pays for your travel expenses.
The deduction for travel expenses will not be denied simply because you
enjoy providing services to the charitable organization. Even if you
enjoy the trip, you can take a charitable contribution deduction for your
own travel expenses if you are on duty in a genuine and substantial
sense throughout the trip. However, if you have only nominal duties
relating to the performance of services for the charity, or if for
significant portions of the trip you are not required to render services,
you cannot deduct your travel expenses.
Example 1. You are a troop leader for a tax-exempt youth group and take
the group on a camping trip. You are responsible for overseeing the
set up of the camp and for providing the adult supervision for other
activities during the entire trip. You participate in the activities of the
group
and really enjoy your time with them. After camping with them, you oversee
the breaking of camp and you transport the group home. You can
deduct your travel expenses.
Example 2. You sail from one island to another and spend 8 hours a day
counting whales and other forms of marine life. The project is
sponsored by a charitable organization. In most circumstances, you cannot
deduct your expenses.
Example 3. You work for several hours each morning on an archeological
excavation sponsored by a charitable organization. The rest of the
day is free for recreation and sight-seeing. You cannot take a charitable
contribution deduction even though you work very hard during those
few hours.
Example 4. You spend the entire day attending a charitable
organization's regional meeting as a chosen representative. In the evening
you go to the theater. You can claim your travel expenses as charitable
contributions, but you cannot claim the cost of your evening at the theater.
Daily allowance (per diem). If you provide services for a charitable
organization and receive a daily allowance to cover reasonable travel
expenses, including meals and lodging while away from home overnight, you
must include in income the amount of the allowance that is more
than your deductible travel expenses. You can deduct your necessary travel
expenses that are more than the allowance.
Deductible travel expenses. These include:
Air, rail, and bus transportation,
Out-of-pocket expenses for your car,
Taxi fares or other costs of transportation between the airport or station
and your hotel,
Lodging costs, and
The cost of meals.
Because these travel expenses are not business-related, they are not
subject to the same limits business related expenses are. For
information on business travel expenses, see Travel Expenses in Publication
463, Travel, Entertainment, Gift, and Car Expenses .
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