Gas Tax Code Hurts Nonprofits

Charities in Raleigh, NC that provide transportation services say they have been hurt by federal law that reimburses their volunteers at a lower rate than business travelers.

Individuals who drive their cars for business or nonprofit purposes can itemize that expense on their tax returns. Business people can claim 58 cents a mile, while volunteers can only claim 14 cents a mile.

Two-time breast cancer survivor Betty Brandon said that the law and record gas prices have severely hurt the nonprofit, Triangle Helping Hands, she founded 10 years ago. She and volunteers drive cancer patients to chemotherapy, radiation and other medical appointments. Transportation costs have cut down on the number of volunteers and the number of rides they can give to patients. Brandon said high gas prices and the low reimbursement have left her out $30,000 and down to three volunteer drivers.

A bipartisan group of U.S. senators, including Democrats Barack Obama, Hillary Clinton and Joe Biden and Republicans Richard Burr and Elizabeth Dole, introduced the Giving Incentives to Volunteers Everywhere Act of 2008 (G.I.V.E. Bill) in August to remedy this disparity. The G.I.V.E. Bill would set the charitable mileage reimbursement rate at 70% of the business rate. However, the bill has remained in the Senate Finance Committee since August.

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