TO: Senator James Inhoffe
FROM: Alesha Thompson
RE: Volunteer Mileage Statute
Introduction
Many nonprofit organizations rely on volunteers to provide transportation for several needs. They drive their own vehicles to bring disabled and senior citizens to doctors. They provide food through organizations such as Meals-On-Wheels (“Volunteer Mileage” 2). Without these volunteers, many needs would go unmet. Unfortunately, nonprofit organizations are only allowed to reimburse their volunteers on a nontaxable basis up to 14 cents a mile. So, these volunteers then must pay income tax on the anything over the 14 cents a mile. The Internal Revenue Service (IRS) has the ability to change …show more content…
Nonprofit organizations can be reasonably considered to be under the same range of the business and medical field. The pros of this solution are that volunteers would not be receiving benefits to help them as they serve the community. The cons of this solution would be that the nonprofit organizations would have to reimburse their volunteers at a higher rate and this means more money out of their budget. Some might argue that paid employees deserve to have the higher rate of reimbursement because they are required by their employers to use a vehicle. Although volunteers are using their vehicles because of their own choice, it still costs them the same amount and they are using their vehicles several more times than those who drive vehicles for business …show more content…
There can be some negotiation on how high the reimbursement rate should be raised. However, it should not be any lower than the medical reimbursement rate. Considering the fact that many of these volunteer miles are done for transportation to hospitals or to provide prescriptions and meals, their service can be considered under the broad term of medical reasons. Many might argue that volunteers choose to participate in these services. Because the volunteers want to be there, these people in opposition do not think they deserve to be reimbursed. However, everyone needs to save money. The volunteers in our community do not need to be punished because they want to help. Because the current reimbursement rate is lower for charity than for business or medical, volunteers are forced to pay income tax on the
FROM: Alesha Thompson
RE: Volunteer Mileage Statute
Introduction
Many nonprofit organizations rely on volunteers to provide transportation for several needs. They drive their own vehicles to bring disabled and senior citizens to doctors. They provide food through organizations such as Meals-On-Wheels (“Volunteer Mileage” 2). Without these volunteers, many needs would go unmet. Unfortunately, nonprofit organizations are only allowed to reimburse their volunteers on a nontaxable basis up to 14 cents a mile. So, these volunteers then must pay income tax on the anything over the 14 cents a mile. The Internal Revenue Service (IRS) has the ability to change …show more content…
Nonprofit organizations can be reasonably considered to be under the same range of the business and medical field. The pros of this solution are that volunteers would not be receiving benefits to help them as they serve the community. The cons of this solution would be that the nonprofit organizations would have to reimburse their volunteers at a higher rate and this means more money out of their budget. Some might argue that paid employees deserve to have the higher rate of reimbursement because they are required by their employers to use a vehicle. Although volunteers are using their vehicles because of their own choice, it still costs them the same amount and they are using their vehicles several more times than those who drive vehicles for business …show more content…
There can be some negotiation on how high the reimbursement rate should be raised. However, it should not be any lower than the medical reimbursement rate. Considering the fact that many of these volunteer miles are done for transportation to hospitals or to provide prescriptions and meals, their service can be considered under the broad term of medical reasons. Many might argue that volunteers choose to participate in these services. Because the volunteers want to be there, these people in opposition do not think they deserve to be reimbursed. However, everyone needs to save money. The volunteers in our community do not need to be punished because they want to help. Because the current reimbursement rate is lower for charity than for business or medical, volunteers are forced to pay income tax on the