I sometimes find it useful to think about acknowledgments for expenses incurred in terms of the more common situation of gifts of property.
In both cases, the non-profit organization provides an acknowledgment that describes what the donor provided, whether that is some item of property or services as a volunteer. The non-profit organization also documents what, if any, substantial benefits were provided to the volunteer in consideration of their property/service.
In both cases, the donor then takes that acknowledgment from the non-profit and adds their own documentation of the value of, in one case, the property they contributed, and, in the other case, the type and value of the expenses they incurred arising from providing that service.
It's also worth noting that the expenses are only deductible if they arise solely from providing the voluntary service, and are not also associated with, for example, vacation that might have also been occurred when the volunteer was traveling to provide the service. That is not anything that the non-profit organization is in a position to know, so it appropriately falls to the volunteer to identify which expenses arose entirely from their voluntary service, and then determine their value. Similarly, the organization is not in a position to know what the expenses were other than what the volunteer tells them, so it is quite properly left to the volunteer to substantiate the expenses themselves, without involving the ono-profit organization..
My US$0.02 worth; the usual disclaimers apply.
Good luck!
Alan
Alan S. Hejnal (he/him)
Data Quality Manager
Original Message:
Sent: 6/20/2024 1:33:00 PM
From: John Taylor
Subject: RE: To receipt or not to receipt
Kristin, you should refer the donor to IRS Publication 526. They can, indeed, claim certain unreimbursed expenses associated with their volunteer activities as a deduction. All they need from you is a letter verifying the dates and nature of the volunteer activity they performed for you.
However, what expenses they can claim is something only they and their tax advisor can determine.
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
Original Message:
Sent: 6/20/2024 12:15:00 PM
From: Kristin Richardson
Subject: To receipt or not to receipt
We have a volunteer donor who has asked for documented tax receipts for the following items:
- Hotel receipts related to committee meeting attendance
- Hotel receipts related to a donor event tied to a committe project
- Meal receipt related to bullet 2
I contend that these are not charitable deductions and therefore we should not provide a receipt. We can acknowledge and give "credit" but will not detail dollar values. My peer, who has been here considerable time, suggests we are fine with sending a "Unreimbursed Volunteer Expenses Gift Receipt". The language that has been used previously in that document does not detail dollars but does say "keep this tax receipt". Outside counsel advise from 2019 is cited as saying it is ok to send this. I disagree with using any language referencing receipt or taxes.
Burden is on the donor at tax time but I don't want to be caught as inferring there is deductability.
What say the crowd?
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Kristin Richardson
Colonial Williamsburg Foundation
krichards1@cwf.org
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