Here's one example. I apologize for the formatting issues. I am cutting and pasting on my phone:
Internal Revenue Service regulations allow you to deduct most out-of-pocket volunteer expenses. Such deductions include reasonable telephone, meal, and travel expenses for attendance at meetings and/or performance of governing body roles such as fundraising.
This letter certifies that you were required to be in attendance in City, State on the following dates for the following purposes:
According to the IRS code, you may deduct the actual cost of airfare, car mileage (see the current instructions for Schedule A of IRS form 1040 for rates), tolls, parking fees, telephone calls, meals, and lodging expenses. However, expenses are only deductible if there is "no significant element of personal pleasure, recreation, or vacation" associated with your travel. No expense for a spouse, child, or friend traveling with you is deductible.
Assuming that your expenses otherwise meet these
conditions and that you have not received any goods or services in exchange for these
contributions as this letter affirms, they are deductible as charitable contributions.
The IRS code requires written verification from the institution of these charitable deductions. This letter fulfills that requirement. You will need to keep track of your expenses to claim the deduction. Obviously, if you request reimbursement from the institution for any of your expenses, they are not deductible. We encourage you to consult your tax accountant for further clarification.
We hope this information helps you in planning your taxes and we thank you for your active involvement.
John H. Taylor
919.816.5903 (Cell/Text)
Big Ideas; Small Keyboard
Original Message:
Sent: 9/24/2024 4:06:00 PM
From: Stephanie Carper
Subject: RE: Gift In Kind Credit for Unreimbursed Expenses and QPQ
Hi John,
Do you have an example of the volunteer letter you mentioned that you could share? That sounds perfect for this scenario.
Thank you,
Stephanie
Original Message:
Sent: 9/24/2024 4:02:00 PM
From: John Taylor
Subject: RE: Gift In Kind Credit for Unreimbursed Expenses and QPQ
Yes and no.
I do not put any values on in-kind receipts. However, I will make an exception regarding publicly traded securities and use your language at a donor's request. But I also add, "Please seek guidance from your tax advisor to determine the deductible value."
There are many nuances with unreimbursed expenses - and not all expenses are necessarily deductible (like first-class airfare). And, unless you demand copies of receipts and proof of payment, the donormay have used miles - or a company car - for all you know.
I have previously shared a volunteer letter that describes the reason for the travel/meeting and confirms dates and locations. The letter goes on to say, "Some unreimbursed expenses may be consider tax-deductible. Please seek guidance from your tax advisor." No amount is mentioned.
John
John H. Taylor
919.816.5903 (Cell/Text)
Big Ideas; Small Keyboard
Original Message:
Sent: 9/24/2024 3:47:00 PM
From: Stephanie Carper
Subject: RE: Gift In Kind Credit for Unreimbursed Expenses and QPQ
I have encountered a similar situation where a board member covered his travel expenses for meeting that my organization would normally have covered. Instead he would like to recognize these expenses as a gift in-kind and has asked for a receipt.
I'd appreciate it anyone could share the language I should use on this receipt. Is this similar to a gift of stock where I could say expenses related to traveling to Chicago for board meeting, which we have valued for internal purposes as $671.31?
Thank you,
Stephanie
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Stephanie Carper
Chief Advancement Officer
Bulletin of the Atomic Scientists
scarper@thebulletin.org
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Original Message:
Sent: 04-02-2024 12:21 PM
From: Keith Padgett
Subject: Gift In Kind Credit for Unreimbursed Expenses and QPQ
Thanks, John. I was hoping things would be as simple as that. I won't be including any values for this receipt.
I appreciate that you follow up on these threads when something related comes to mind, and that these questions are things that you continue to think about after your replies (which are always lightning fast). It shows you care a great deal about the success and understanding of everyone in this community.
Best,
Keith
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Keith Padgett
Connecticut College
kpadgett@conncoll.edu
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Original Message:
Sent: 04-02-2024 12:06 PM
From: John Taylor
Subject: Gift In Kind Credit for Unreimbursed Expenses and QPQ
Oh, and Keith, I neglected to mention that even if you have all the requisite supporting documentation, the receipt should not mention any values associated with this donation!
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987