Volunteer Expenses for Charity

[Kram BergGold]

When a person volunteers for Habitats for Humanity and travels to New Orleans for a week and works full days for Habitats the expenses for travel, lodging, transportation, and meals are a charitable donation. In the case of volunteering for a week, the expenses would be over $250. Since Habitats has no idea what was spent their acknowledgement letter can't address the amount. Is this ok?

[Uncle Sam]

Volunteer Expenses

While the letter can't address an amount - it could state that the travel and
lodging expenses incurred in connection with such a trip are the responsibility
of the volunteer.

[FEDUKE404]

Tight rope to walk

There is a limitation that the "volunteer" cannot gain significant personal pleasure, recreation, or vacation from the travel.

It's the old story of "what WAS the purpose for the trip??"

A reasonable person might justifiably be a bit skeptical since NOLO is involved....

Bottom line: I would likely deduct valid expenses but only after getting all of the facts on the table first. And in many instances some of the expenses are paid (even indirectly) by a home organization, such as a church.

FE

[taxea]

When a person volunteers for Habitats for Humanity and travels to New Orleans for a week and works full days for Habitats the expenses for travel, lodging, transportation, and meals are a charitable donation. In the case of volunteering for a week, the expenses would be over $250. Since Habitats has no idea what was spent their acknowledgement letter can't address the amount. Is this ok?

why can't they...don't the volunteers have receipts?

[Kram BergGold]

Clarification

Yes, the volunteer has receipts and the work/trip is kosher. My concern is the thank you letter from the charity does not contain any mention of the amount as required by law.
Which in this case makes sense as the charity did not receive anything from the taxpayer.
Does anyone know if there is an exception to the documentation rules for this situation or if the rules I am thinking about do not apply?

[newbie]

why can't they...don't the volunteers have receipts?

That would fly come audit time. LOL

With good supporting documentation I'd deduct. Receipts, names, what was accomplished, the letter and as much detail as possible.

[Uncle Sam]

Volunteer Expenses for Charity

The charity isn't required to document for the client what expenses were incurred.
As I stated in a prior post - all that should be noted on any acknowledgement letter is that the volunteer participated in a specific activity, dates, locations, times, what was accomplished, and the fact that the volunteer was responsible for incurring any out of pocket expenses.
Copies of the literature describing the event(s) - brochures listing the schedule or disclosure of the organization's projects should be the responsibility of the volunteer to keep - then along with the organization's letterhead acknowledging the person's participation in the event(s) should suffice in establishing reasonableness for lodging and food expenses of locations in the vicinity of the project.

[New York Enrolled Agent]

Kram

I think Sam may be on target.

A piece of §170(f)(8) - I think the trip falls under the part which I underlined.

B) Content of acknowledgment. An acknowledgment meets the requirements of this subparagraph if it includes the following information:
(i) The amount of cash and a description (but not value) of any property other than cash contributed.

(ii) Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i) .

(iii) A description and good faith estimate of the value of any goods or services referred to in clause (ii) or, if such goods or services consist solely of intangible religious benefits, a statement to that effect.

[JohnH]

Personal experience here - on the mission trips I've gone on, I don't account to the church for any of my out-of-pocket expenses. I just keep good records and deduct them on my tax return.

Visa charges, airport parking while I'm away, meals enroute, airport departure fees, separate phone & internet fees, laundry, tips, and most anything I spend locally while on the trip are a part of my contribution deduction. Meals are deductible at 100%, not subject tothe 50% reduction. If I bring back a few souvenirs, I don't dedcut them. I'm not sure about the deductibility of clothing items I buy while I'm there, but since I leave these items for the local church to distribute to others and don't bring them home, I consider them a deductible item. (If I'm ever audited I guess I'll find out whether that's legitimate. Maybe someone on this forum can elighten me).

[WhiteOleander]

John, for the clothes you buy and donate to the church, wouldn't you need to do the 8332 for non-cash donations? I think it would pass that way.

[Kram BergGold]

NYEA nailed it

The underline passage is spot on, thanks