How to Write off NonProfit Work

Did you now that volunteers may be eligible to write off nonprofit work?If you run a nonprofit you should make it a regular habit to remind volunteers -- perhaps your board or advisory council members, other regular volunteers, or those who assist at special events -- about these possible deductions. It's true that the deductions available to volunteers may not add up to big dollars, since there's no deduction for the actual hours they put in. Even a highly skilled volunteer, such as a graphic designer or lawyer, can't deduct the value of his or her time.

In general, for volunteer services to a nonprofit group, you don't have an ability to deduct the street value of the services. But your out of pockets directly related to the donated services generally will be deductible. For example, a graphic designer won't get a deduction for design time, but if they donate printed materials with a hard cost that is deductible.
It's not advised that you give tax advice, but below are some general deductions that the IRS will allow:
Transportation Expenses: Keep track of expenses incurred while traveling from home to the office, to meetings and other related sites. Volunteers who drive can choose to either record and deduct actual gas used or mileage driven. Additionally you can deduct parking fees and tolls, public transportation fees and taxis.
Travel Expenses: When your volunteer work takes you away from home, be sure to keep track of airfare, transportation accommodations and meals. One large note is that the IRS frowns on trips that are doubled as a vacation so leave your family and sight-seeing plans at home.
Out-of-Pocket Expenses: It's easy to give of your time and in the business of it all spend your own money to get things done. If you are putting out money for copies,  postage, phone calls and other minor charges be sure to take note. Donating supplies are as valuable as donating time and the IRS will allow for deductions here.
Now the fine print. The IRS, like most organization, appreciates the value of a volunteer and applauds the effort so don't take advantage of the opportunity.

• Make sure the organization is a qualified not-for-profit.
• You have to itemize your deductions so a 1040EZ return won't cut it.
• You can't claim expenses if you were reimbursed by the nonprofit.
• Volunteer work must be related to and incurred because of, the work at hand.
• Keep accurate records and even a letter from the nonprofit as to your relationship.

Photo courtesy of duron123 at Freedigitalphotos.net