Can I Claim A Deduction For Charity Volunteer Work?

If you volunteer for a church or charity organization (does not apply to "non-profit" or "tax-exempt" organizations that are not allowed to accept tax-deductible donations), you can deduct your reasonable out-of-pocket expenses of that activity. This would include your car expenses (at 12 cents a mile, or the actual expense for gas and oil), supplies, uniforms, etc. You cannot take a deduction for your actual services, even if your time has a readily-determinable fair market value.

Example: Frank is a electrician who generally bills at $75 an hour. He did some work for his local church, which took ten hours of his time, plus two hours he paid to an assistant who makes $16 an hour, and $45 worth (at cost) of supplies and materials. Assuming he does not deduct them as business expenses, his costs for supplies and paying his help may be deducted as a charity donation, as can his mileage to and from the job. He cannot deduct anything for his time or personal labor.

If your out-of-pocket expenses in providing services to a charity come to $250, for a single instance or series of related instances, you will need a written acknowledgment from the charity in order to take the deduction. See the Report concerning the necessity for receipts.

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