Volunteer Expenses?

[Lion EA]

Email from a client who belongs to a model train club that's a 501( c)(4). Are his out-of-pocket expenses to volunteer at train shows deductible? (And, yes, I know the part about mileage &/or actual expenses; it's the 501( c)(4) part I need direction on.)

His email:

Occasionally the club gets a "donation" from the show sponsors. None of the club contributors get anything financial.

We are strictly volunteers working at the show.

The train club is a registered 501©(4) corporation.

Am I able to deduct mileage, gas and hotel expenses for train shows?

[michaelmars]

Types of Qualified Organizations

Generally, only the following types of organizations can be qualified organizations.

1. A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Certain organizations that foster national or international amateur sports competition also qualify.

2. War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico).

3. Domestic fraternal societies, orders, and associations operating under the lodge system. (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.)

4. Certain nonprofit cemetery companies or corporations. (Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt.)

5. The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes.)

   Example 1. You contribute cash to your city's police department to be used as a reward for information about a crime. The city police department is a qualified organization, and your contribution is for a public purpose. You can deduct your contribution.

   Example 2. You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Because the trust fund is part of the U.S. Government, you contributed to a qualified organization. You can deduct your contribution.

Examples. The following list gives some examples of qualified organizations.

• Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations.

• Most nonprofit charitable organizations such as the American Red Cross and the United Way.

• Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. This also includes nonprofit daycare centers that provide childcare to the general public if substantially all the childcare is provided to enable parents and guardians to be gainfully employed. However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct .

• Nonprofit hospitals and medical research organizations.

• Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs.

• Nonprofit volunteer fire companies.

• Nonprofit organizations that develop and maintain public parks and recreation facilities.

• Civil defense organizations.

[Mr. Pencil]

it's the 501( c)(4) part I need direction on.)

According to the IRS, you can not deduct contributions to a 501(c )(4) organization, with only a few very narrow exceptions.

[cut & paste this address, then delete the space after the "c" before you search!]

www.irs.gov/Charities-%26-Non-Profits/Other-Non-Profits/Donations-to-Section-501(c )(4)-Organizations

[Jack from Ohio]

Email from a client who belongs to a model train club that's a 501( c)(4). Are his out-of-pocket expenses to volunteer at train shows deductible? (And, yes, I know the part about mileage &/or actual expenses; it's the 501( c)(4) part I need direction on.)

His email:

Occasionally the club gets a "donation" from the show sponsors. None of the club contributors get anything financial.

We are strictly volunteers working at the show.

The train club is a registered 501©(4) corporation.

Am I able to deduct mileage, gas and hotel expenses for train shows?

Short answer: No. Not a "charitable" organization.

[Lion EA]

Thank you all. I knew it didn't make the IRS list of qualified charities. Needed the words to explain to client the difference. I like the short answer; and if he wants the long answer, that link is perfect.