Taxes: Deductability of Scouting Services

We all give a significant amount of time and effort to the Scouting program. In addition, we incur expenses in performing each of our different duties. Although we do not participate in this program to get a reward, we should take advantage of our rights and responsibilities when it comes to paying our taxes. Each of us has accumulated deductible expenses, and may be able to take advantage of them when the tax man comes around in April. This article is an attempt to explain the intent and rules regarding the Charitable Contributions Deduction. As always, confirm any deductions with an attorney or tax advisor.

General Rule. The general rule is that you will be allowed a charitable tax deduction for un-reimbursed, out-of-pocket expenses directly connected with the performance of services for the local council or scouting unit. If they are considered personal, living or family expenses, they will not be deductible. So, for example, the cost and upkeep of your BSA field uniforms will be tax deductible because they are necessary, and only appropriate, for BSA use. However, the cost and upkeep of a dress uniform (grey slacks and dark blazer) would NOT be deductible because of the potential for personal use of the items. Contributions are not considered deductible if you or a relative keep the right to control the use of the property. The contribution is not considered made until your interests in or rights to the property end.

Cash and noncash Donations. Donations of $250.00 or more must be backed up in writing by the charity. Your canceled check is not sufficient proof. You must ask the council or unit leaders for this substantiation before filing your return. Separate payments, over time, that are less than this limit but total to more than $250.00 are treated as separate contributions and do not need supporting documentation (However, five checks for $100.00 written within a short time frame would be considered a single donation.) The written documentation must provide (1) the amount of cash or a description of noncash property contributed, (2) whether the charitable organization provided any services in return, and (3) a description and estimate of the value of those goods and services or a statement that you received only intangible religious benefits.

Donating of used property provides an instant end-of-year deduction without having to spend a cent. However, the property is donated at the fair market value. This is generally accepted to be the amount a non-related buyer would be willing to pay for the item on the open market (such as at a yard sale, thrift shop, or classified advertisement). Non-cash contributions in excess of $200 should be described in a statement attached to your tax return. In excess of $500, it must be reported on Form 8283 (again, see your tax advisor).

Travel Expenses. Deductible travel expenses include: air, rail and bus transportation;out-of-pocket car expenses; taxi and shuttle fares; lodging costs; and reasonable meal costs. These expenses will only be deductible, though, if there is "no significant element of personal pleasure, recreation, or vacation" in the trip. Also, you cannot deduct travel, meals, lodging, or other expenses for a spouse or children. So, for example, because of the large portion of volunteer services you would render as a staff member or participant at MASSJAM, your expenses would be tax deductible (even if you had a great time!). But, if you attended a camporee in New Jersey and spent a few days at the Jersey coast during or after the event, you would likely lose much of your travel expense deductions for the trip.

Car Expenses. If you use your car for the benefit of the council or unit, you can either deduct actual expenses (such as gas, parking, tolls, etc.), or use a standard mileage rate of 12 cents per mile for reimbursement. You cannot deduct any portion of general repair, maintenance, depreciation, or insurance. Of course, you should keep very good records to substantiate any actual expenses (a simple log kept in the car and updated after each event, or perhaps once a week, provides ample records to support this). The transportation of youth to and from activities and meetings, however, is not deductible.

A unit leader who is required to be present at an event for the event to occur, however,can deduct all direct expenses incurred in performing those services (including car/transportation expenses).

Use of Property/Personal Services. If you let the council, a troop, post or pack use your property, such as space in a building, a boat, car, or vacation home, you cannot deduct the rental value of that property. However, actual out-of-pocket operating expenses (such as fuel, utilities, etc) will be deductible. You should be aware that letting a unit use a vacation home may push the property owner over the personal use ceiling, preventing the owner from taking rental losses on it for the year.

Tickets to Benefits and Charity Events. The cost of a ticket (be it called a donation or fee) is deductible... to a point. You must first subtract the fair-market value of the benefit received--the meal or performance. If the price of the meal or show is equal to or less than its fair market value, you have no deduction. However, the IRS (in its own charitable gesture) has agreed to overlook the value of some benefits of negligible value, refer to your tax advisor for further information. As far as the IRS is concerned, the amounts you pay for raffle tickets or to play bingo or other games of chance are gambling losses and not deductible.

Out-of-Pocket Expenses. Costs that are deductible as charitable contributions include:

Non deductible expenses include meals while performing service in your town, or babysitting services or child care expenses incurred to enable you to do volunteer work.

Finally, you can not get a deduction for either loaning the council or scouting units money without interest, or for contributing personal time or services to the council. So, for example, a doctor cannot deduct the value of income lost, or the normal hourly value of his services, for giving volunteer service as a camp or jamboree.

The potential for tax deductions has always been less motivation than the opportunity to offer volunteer service to Scouting. The BSA has no resource as valuable as the time and efforts of its volunteers!

This information was edited from an original memo by Colin French from National BSA Finance Support Division, and the Money 1995 Income Tax Handbook by Mary Sprouse. You should always double-check tax matters with your own attorney or tax advisor.
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Last Updated on January 14, 1997 by Shawn J Ashe