Tax benefits
From AFSWiki
Since AFS is a tax-exempt, not-for-profit corporation under Section 501(c)(3) of the Internal Revenue Code, tax benefits are available for volunteers under the IRS's general charitable contribution deduction. Volunteers may deduct out-of-pocket expenses incurred while doing volunteer work for AFS. AFS holds the following certification with the IRS:
- AFS-USA, Inc. is an IRS-recognized tax-exempt organization (federal ID 39-1711417)
- Subordinate chapters and affiliated committees of AFS are included in this tax-exempt status
- AFS-USA, Inc. is classified as “not a private foundation.” Verification of this classification is needed by foundations that make contributions to AFS.
If you itemize deductions on your federal tax form, deductible expenditures include:
- direct gifts of money to AFS
- automobile mileage (check your annual IRS packet for current rate. Related OpEd.)
- bus and cab fares for AFS business
- parking fees and tolls for AFS business
- reasonable entertainment; meals provided for others
- meals and lodging expenses, if associated with AFS business-related travel
- AFS business-related travel expenses.
Host families may deduct from their federal tax return $50 for each month of hosting. (More details needed here!)
Nondeductible expenditures include:
- value of volunteer time
- dependent care expenses
- meals (unless associated with travel)
- entertainment.
An “out-of-pocket” stipulation renders nondeductible any amount that directly benefits the taxpayer (or the taxpayer’s family) rather than the organization. Participation fees, most meals, and entertainment, for instance, fall into this category.
See Also
- volunteer expenses for information on reimburseable expenses. Do not deduct expenses that have been reimbursed.
