What rate to use for Non-Profit Mileage reimbursement

[BulldogTom]

If a Non-Profit reimburses a volunteer for legitimate travel, what rate do they use?   64.5 cents or 14 cents?

Thanks

Tom
Longview, TX

[ILLMAS]

Good question, I have a client that reimburses the full amount when volunteering directly for events, passing out flyers, surveys etc….

[kathyc2]

14 cents.  The same rate that they could take a deduction for it they itemized deductions.

[Lee B]

Let's split the difference:

"Nonprofit organization employees and board members are eligible for business mileage reimbursement whereas volunteers will receive the charity rate.

However, volunteers may receive reimbursement for commuting mileage which employees are not eligible for."

 

[Lion EA]

Great explanation. Where did you find that? I want to pass it on to my church, with a cite.

[BulldogTom]

23 minutes ago, cbslee said:

Let's split the difference:

"Nonprofit organization employees and board members are eligible for business mileage reimbursement whereas volunteers will receive the charity rate.

However, volunteers may receive reimbursement for commuting mileage which employees are not eligible for."

I saw that explanation as well in my search.   I can't find a cite for it in my MTG or anywhere in an IRS pub (yet - it was a cursory search).

@cbslee do you have an authorative cite?   

Thanks

Tom
Longview, TX

[Lee B]

The standard Accountable Plan Rules apply to non profit employees and directors.

I don't think you are going to find a direct cite clearly written in plain english.

[kathyc2]

Technically, the NFP can pay volunteers whatever rate they want.  However, anything over the 14 cents is pay and taxable income to the volunteer. 

[DANRVAN]

I have not seen an authoritative cite one way or the other.

However, the Oregon Department of Administrative Services claims there is no tax consequence if volunteers are reimbursed at the GSA rate under an accountable plan:

https://www.oregon.gov/das/Financial/Acctng/Documents/40 Travel search.pdf

 128.   "Volunteers are eligible to receive a mileage reimbursement of up to the GSA rate, as identified in Appendix A. As long as the reimbursement is handled through an accountable plan, there are no tax consequences related to the reimbursement. Refer to paragraph 111 for information on an accountable plan."

[DANRVAN]

On 2/4/2023 at 11:16 AM, kathyc2 said:

However, anything over the 14 cents is pay and taxable income

I question that.

 For example let’s say charitable organization distributes meals to shut ins.  Meals are delivered by employees of the org. and volunteers.  Employee’s and volunteers all use their personal vehicles; and are all reimbursed under an accountable plan using the standard federal mileage rate.

The standard rate is bases on the estimated cost per mile of operating your vehicle.

For whatever reason, IRS does not allow you to deduct  the full cost for medical or charitable travel.  However, the cost is still the same whether you are driving for business, medical or charity.

So if a volunteer/client came in and said they received $xxx.xx from charity as reimbursement for travel under accountable plan, I would offer the position that it is not taxable income over the standard rate for the charitable deduction.  

Instead, they have been reimbursed for the cost of operating their vehicle for the benefit of the organization.  That also appears to be the position taken by Oregon DAS as mentioned above.

[kathyc2]

8 hours ago, DANRVAN said:

So if a volunteer/client came in and said they received $xxx.xx from charity as reimbursement for travel under accountable plan, I would offer the position that it is not taxable income over the standard rate for the charitable deduction.  

Just remember that the only actual costs that can be used for charitable driving are gas and oil. 

[Lee B]

1 hour ago, kathyc2 said:

Just remember that the only actual costs that can be used for charitable driving are gas and oil. 

That applies to Schedule A itemizing. Does it apply to being reimbursed by the charity?