Bills Would Raise Rate for Volunteers’ Car Use
September 5, 2002 | Read Time: 1 minute
Two bills introduced in Congress would help people who use their automobiles as part of their volunteer work for charities.
Under federal law, volunteers who drive their cars for charitable purposes may be reimbursed up to 14 cents a mile without the payment’s being subject to income tax. The rate for the business use of a vehicle is 36.5 cents a mile. The bills pending in Congress would increase the mileage reimbursement for charitable purposes to the same figure used for business travel.
“At a time when government is asking volunteers and volunteer organizations to bear a greater burden of delivering essential services, the 14-cents-per-mile limit is posing a very real hardship,” said Sen. Russell D. Feingold, a Wisconsin Democrat.
An increase in the rate would “help ensure charitable organizations can continue to attract the volunteers that play such a critical role in helping to deliver services,” said Mr. Feingold, who said a number of groups from his home state have told him of the need for the change. Mr. Feingold’s bill is S. 2761.
Rep. Todd Russell Platts, a Pennsylvania Republican, has introduced similar legislation — H.R. 5229 — in the House of Representatives.