Mission Trip

[Snow White]

I have a client who went overseas on a mission trip. Out of pocket = Airline ticket $930, Lodging $188. Is this deductible as actual charitable expenses? She was there for three weeks (Phillipines) and did real work for the children's home. Her lodging was so low because it was partially subsized along with the airline ticket.

[Snaggletooth]

Seven Drawfs

Snow White, I'm not going to tell you that none of this can be deducted, but I can definitely tell you it is a CLASSIC lack of tax planning.

Client should have contributed to the charity (with no strings attached), and then let the charity handle the transportation and these expenses. Probably makes better economic sense too if the charity could lower the costs by handling multiple travelers.

All this money paid directly to the charity could be deducted. I know I didn't answer your question, but I did provide a workable alternative. I would probably try to deduct these expenses if I were reasonably certain of the purpose, but I would have a hard time supporting it.

Also, the fact that the individual arranged for this outside the control of the charity may give rise to suspicion that some of the travel might be personal.

[Unregistered]

charitable deduction

I know travel in the USA can be deductable as a charitable expense, I would think if it is a genuine charitable situation like a mission, then it could be deducted.
I have a son on a mission to Iceland but I do it like Snag suggested. I donate money to my church and the church supports my son on his mission.

[Ken]

okay now I;m registered

The above message by me showed up as an unregistered guest. I dont like to post annomymosly sp? so I am now registered.
Ken

[Bees Knees]

Look at the two examples on page 4-17 in TTB under travel expenses as out of pocket expenses for charity. You have to determine the time spent on charitable work and other activities to decide if all or none of the travel is deductible.

[JohnH]

So to spin this out a little more, let's say a church sponsors a mission trip to another country in support of a US-Based mission organization. There's no sightseeing, vacation, or personal element to the trip - it's all mission-related. Church members (including the people gonig on the mission) make donations to the church and the main costs of the trip are paid from the church mission fund. To me, it seems that all donations to the fund are deductible, even if the people who are actually going on the mission trip contribute most of the donations (90% or more).

However, the people going on the mission also have some out-of-pocket expenses not covered by the church. These would include immunizations ($400), take-along medications for malaria, etc ($50), visa fees (not passport fees), teaching materials ($100), meals enroute ($100), and some other related incidentals ($100 or so). Is it reasonable to deduct these out-of-pocket expenses as contributions as well, or has a line been crossed?

[oceanlovin'ea]

sent by church?

I think another point to consider is if they were delegated by the church to go on this mission. I think if they have a letter from the church asking them to go on this mission trip, they are going as representatives of the church and that would qualify them to deduct the cost of the trip.
For example, if the church sent out letters asking for people to volunteer to go on the mission and supplied applications to be filled out. People would have to meet certain criteria to go on the mission trip and be willing to pay their own expenses. From the applicants, the church would select a certain number to go and would acknowledge by letter that they had been selected as volunteers to represent the church on this trip.
I think this would make the trip acceptable to be a charitable contribution. They would still have to meet the other requirements as to amount of time in pleasure activities, etc.

Linda

[Bonnie]

Our church does overseas mission trips all the time as well as stateside. I always deduct any out of pocket expenses the person incures that are required to do the mission trip to include airline tickets, food, lodging, even passports because they couldn't go without getting the passport. It says you can deduct any expenses to do charitable work. A few years back our church went to New Orleans to help with clean up from Hurricane Katrina. We do lots of mission work in lots of areas mainly Central America. I have been on one trip to Guatamala several years back and I can tell you the trip was for work not pleasure so I have no problem deducting such expenses. Of course these people are going through our local church and I know what they are doing. Sometimes I have given money for other people to go and of course I get the deduction as money contributed through the church shows up on my giving statement. I have also done it where the person going gives to the church and they pay the expenses, but I have no problem taking the expense on Sch A if the person pays for it themselves.

[DaveO]

If you are a bonfire representative of the church or charity and operate under their banner while on the mission the travel expense is deductible. Organizing a trip on your own, even if you perform services of a charitable nature, doesn't cut it.

[MAMalody]

I have a client who went overseas on a mission trip. Out of pocket = Airline ticket $930, Lodging $188. Is this deductible as actual charitable expenses? She was there for three weeks (Phillipines) and did real work for the children's home. Her lodging was so low because it was partially subsized along with the airline ticket.

Adult participants on a short-term mission trip, in which theypay their own expenses, can claim their un¬reimbursed travel expenses as a charitable contribution. The income tax regulations specify:

Unreimbursed expenditures made incident to the rendition of services to an organization contributions to which are deductible may constitute a deductible contribution. For example, the cost of a uniform without general utility which is required to be worn in performing donated services is deductible. Similarly, out of pocket transportation expenses necessarily incurred in perform¬ing donated services are deductible. Reasonable expenditures for meals and lodging necessarily incurred while away from home in the course of performing donated services are also deductible. Treas. Reg. 1.170A 1(g).

Therefore:
1. Unreimbursed travel expenses paid by participants are deductible as charitable contributions if the trip involves “no significant element of personal pleasure, recreation, or vacation.”
2. If a participant is entitled to a charitable contribution deduction for unreimbursed travel expenses of $250 or more, the church must issue an “abbreviated written acknowledgment” in order for the participant to substantiate a deduction.