Can I deduct the value of volunteer work?
In short, there are certain tax benefits to take advantage of as a volunteer. In fact, any volunteer of a §501(c)(3) tax-exempt organization is entitled to receive deductible charitable contributions. Although no tax deduction is allowed for the value of the services performed for this type of organization, some deductions are permitted for out-of-pocket costs incurred while volunteering.
For 2023, you can use a “standard mileage rate” (14 cents per mile) to compute a deduction for any miles you drive in performing services for your church. Be sure to maintain accurate records.
Example: Bob is a carpenter and donates 40 hours of time for his church’s building project. He cannot deduct the value of his
donated labor, but he can deduct the value of materials, he purchased in performing the donated labor and any unreimbursed travel expenses he incurred.
Example: Several church members go on a mission trip to Africa. The value of their labor is not deductible, but they can deduct their unreimbursed travel expenses (i.e., transportation, meals, lodging)
incurred in performing the project.
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Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421.0101
Fax: (888) 876.5101
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com