How to Claim a Charitable Donation of Services

You may not take a tax deduction for the value of volunteer services that you provide to a charitable organization. However, there are a number of incidental expenses relating to volunteer activities that may be claimed as a tax deduction.

Instructions

1. Understand that you may not claim a tax deduction for the fair market value of the time and services that you provide to a charity as a volunteer. This includes the value of any lost income while you work as an unpaid volunteer.

2. Verify that the charity for which you are volunteering is a tax-exempt non-profit charitable organization, as defined by the Internal Revenue Service of the United States government. Deduct out of pocket expenses incurred during your service only if you itemize deductions on your federal income tax return.

3. Recognize that certain unreimbursed expenses are deductible. Deduct ordinary expenses, such as uniform costs and upkeep, supplies that you donated during the course of your service and transportation costs, including bus or cab fare, parking or toll fees, and a mileage allowance for driving.

4. Expect to claim long distance travel expenses, such as lodging, transportation and food, only when you can show that the expenses were genuinely and substantially related only to your volunteer services and not to personal or recreational travel.

5. Keep accurate records of your out of pocket expenses. Ask the charity for an authorized worksheet to record the date, time and miles driven for every trip. Save all of your receipts showing the date and amount of every purchase. Note the organization's name on the receipt.

6. Obtain a written acknowledgement (paper or electronic) from the charity for every single expense or series of related expenses greater than $250. Be sure this letter explains that you did not receive any goods or services in exchange for your volunteer effort.