Take Action
To make the case for the legislation, Sen. Cardin (D-MD) has asked us to share with his office examples that demonstrate why an adjustment to the mileage rate is so important for your work, your missions, and the people you serve. Please send us stories or examples of the impact the volunteer mileage deduction has on your organization to help the senator's efforts.

The Issue
Current law allows charities to reimburse volunteers, on a nontaxable basis only, up to the charitable mileage rate of 14 cents per mile. Alternatively, volunteers are permitted to deduct their “out of pocket” expenses incurred in providing donated services — when those expenses are not reimbursed.

The Internal Revenue Service (IRS) has the authority to regulate volunteer mileage rates for business and medical/moving purposes, but not for charitable activities. The charitable rate can only be adjusted through legislation, and has remained unchanged since 1997.

Legislation in the 112th Congress
Sen. Benjamin Cardin (D-MD) is preparing to reintroduce the Giving Incentives to Volunteers Everywhere (GIVE) Act to address the inequities between the charitable rate and those for business and medical/moving purposes.

The GIVE Act would:

1. Exempt from a volunteer’s taxable income any reimbursement by a charity for mileage up to the business rate;
2. Give the Treasury Department authority to change the volunteer mileage deduction rate, which has been fixed in statute at 14 cents per mile since 1997; and
3. Raise the volunteer mileage deduction immediately to the medical/moving rate and ensure it doesn't fall below that rate in the future.

Background
The IRS on December 9,;2011 announced the standard mileage rates used to calculate the deductible costs of operating an automobile for business, medical/moving, and charitable purposes for 2012. The rates are:

• 55.5 cents per mile for business miles driven; up from 51 cents
  
• 23 cents per mile for medical/moving purposes; up from 19 cents
  
• 14 cents per mile driven in service of charitable organizations