Enisgn Offers Plan to Remove Hurdle to Volunteering

Press Release

ENSIGN OFFERS PLAN TO REMOVE HURDLE TO VOLUNTEERING

Senators John Ensign (R-NV) and Charles Schumer (D-NY) announced today a bipartisan plan to triple the mileage deduction rate allowed for volunteers. Current law only allows volunteers to deduct miles driven for charitable work at a rate of 14 cents per mile, a significant disincentive to volunteering.

"This is not only a necessary step to keep our laws up to date but also a common-sense solution to a problem that discourages volunteering," said Ensign. "As gas prices continue to skyrocket, volunteers who drive seniors to the doctor or deliver meals to those in need are being forced to cut back because the deduction rate is so unrealistic."

Dozens of volunteer organizations have described a severe drop in participation as gas costs prices have risen above four dollars a gallon.

In June, the Internal Revenue Service (IRS) increased the mileage rate for business use from 50 cents per mile to 58.5 cents. Americans who use their car to perform charity work are also allowed to take a deduction on their taxes for each mile driven. But due to a quirk, the IRS does not have the power to make adjustments administratively to the mileage rate for charity work. That rate, which is set at a meager 14 cents, can only be adjusted by statute.

The bill, called the Giving Incentives to Volunteers Everywhere (GIVE) Act, would change that by permanently setting the charity rate at 70 percent of the business rate. This would have the effect of increasing the deduction from its current level of 14 cents per mile to about 40 cents per mile. In the future, when the IRS makes new adjustments to the business rate, the charity rate would also get a proportional lift.

As a result, more than 100 groups have already endorsed The GIVE Act, including the Foundation for Positively Kids in Nevada and the Nevada Association of Nonprofit Organizations.

Gail J. McGovern, President and CEO of the American Red Cross, said: "The American Red Cross strongly supports this bill to help relieve the burden of gas prices on volunteers who donate their time to serve people in need. It will help ensure that Red Cross volunteers can continue to respond to some 200 disasters and emergencies every day in communities across our country."

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