Tell Congress: Cosponsor the Volunteer Driver Tax Appreciation Act (H.R. 3032 / S. 3020) and Support Volunteers in Your Communities
- PURPOSE: To equalize the charitable mileage rate with the business travel rate
- SUPPORTED BY: Independent Sector, National Association of Towns and Townships, National Council of Nonprofits, list of organizations
- IMPACT: Would raise the volunteer mileage rate to the standard business rate for volunteers who drive their vehicles on behalf of charitable nonprofits to transport property or individuals, providing a needed incentive for volunteer drivers
Background
Many charitable nonprofits rely on volunteers to deliver vital services in their communities. Yet, the number of people volunteering has not returned to pre-pandemic levels at many organizations. Volunteers point to high gas prices and poor tax incentives as main reasons they have stopped donating their needed time and talent. The impact is felt most acutely in rural communities and transit deserts where drive times to provide services are longer. Congress established a volunteer, or charitable, mileage rate of 14 cents per mile in 1997 when the average cost of gasoline was $1.23. However, the volunteer mileage rate has not been updated in the 26 years since. Currently, the IRS can adjust the business rate without Congressional approval, but not the volunteer rate, which is fixed in statute.
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