WASHINGTON – U.S. Senators Benjamin L. Cardin (D-MD) and Olympia Snowe (R-ME) joined forces with Senators Chuck Schumer (D-NY) and John Ensign (R-NV), along with Senators Russ Feingold (D-WI), Barbara Mikulski (D-MD) and Chuck Grassley (R-IA), to introduce updated legislation that would provide relief to volunteers who use their personal vehicle for charitable activities. Under current law, mileage rates for charitable activity are fixed under the Internal Revenue Code at just 14 cents per mile. However, the average cost of a gallon of regular gas has more than doubled in the last eight years and far outpaces the deduction limits.
The new bill introduced Monday, the Giving Incentives to Volunteers Everywhere Act of 2008 (GIVE Act/S. 3532), would give the IRS discretion in setting the mileage deduction rate for volunteers and charitable organizations, which could be as high as (or higher than) the business mileage deduction but not lower than the deduction for moving and medical expenses. Currently, the IRS is able to increase the deduction amount for medical, moving and business expenses to reflect current economic conditions because the rate is not written into the law.
“This is a win-win for volunteers and the people who so desperately need their help in the midst of our current economic crisis,” said Senator Cardin. “I am proud to stand with so many leaders in the U.S. Senate who understand that Congress has a responsibility to act swiftly, so that the IRS can ease the burden on charitable volunteers who share their time and resources with some of our most vulnerable citizens.”
“As the cost of a barrel of oil jumped $19 dollars yesterday, it is critical that we work to keep high energy prices from deterring charitable acts and volunteerism,” Senator Snowe said. “This bipartisan legislation will alleviate transportation costs for volunteers and bolster the charitable community in this economically turbulent time.”
“The size of the gas mileage deduction for charity workers is paltry and antiquated. Right now, charities are being punished because the law has not kept pace with the spike in gas costs. The bottom line is, delivering meals on wheels shouldn’t put you in the fast lane to the poor house. I have long urged this fix because it will allow charity workers to keep doing their important work despite the pain at the pump," Senator Schumer said.
“Too often our laws and regulations become outdated,” said Senator Ensign. “This is yet another example, and the result is that current law discourages people from volunteering. The reimbursement rate for charitable deductions for mileage driven needs to keep pace with the cost of gasoline. Fortunately, a broad bipartisan group of Senators is pushing for this bill to become law so that the IRS can fix this technical glitch and volunteers can be justly compensated for the costs they incur driving seniors to the hospital or delivering food to those in need.”
Congressmen John Lewis (D-GA) and Jim Ramstad (R-MN), Chairman and Ranking Member of the House Ways and Means Subcommittee on Oversight, introduced identical legislation, the Fair Deal for Volunteers Act (H.R. 6854), earlier this month.
The Cardin-Snowe-Schumer-Ensign-Mikulski-Grassley GIVE Act is co-sponsored by a growing number of Senators, including: Cardin, Snowe, Schumer, Ensign, Mikulski, Grassley, Feingold, and
Evan Bayh (D-IN)
Joseph Biden (D-DE)
Barbara Boxer (D-CA)
Maria Cantwell (D-WA)
Hillary Rodham Clinton (D-NY)
Chris Dodd (D-CT)
Tom Harkin (D-IA)
John Kerry (D-MA)
Patrick Leahy (D-VT)
Carl Levin (D-MI)
Blanche Lincoln (D-AR)
Patty Murray (D-WA)
Barack Obama (D-IL)
Bernie Sanders (I-VT)
Debbie Stabenow (D-MI)
Lamar Alexander (R-TN)
Richard Burr (R-NC)
Susan Collins (R-ME)
Mike Crapo (R-ID)
Elizabeth Dole (R-NC)
Gordon Smith (R-OR)
Olympia Snowe (R-ME)
John Sununu (R-NH)
John Warner (R-VA)
The following organizations have expressed their support for this legislation:
National Organizations
American Association of Homes & Services for the Aging
American Cancer Society Action Network
American Heart Association
American Red Cross
American Society of Association of Executives
Catholic Charities USA
Easter Seals
Experience Wave
Feeding America (formerly known as America’s Second Harvest)
Fulbright Association
Habitat for Humanity International
Independent Sector
League of American Orchestras
Lutheran Services in America
Meals on Wheels Association of America
National Association of Area Agencies on Aging (N4A)
National Association of State Long-Term Care Ombudsman Programs
National Committee to Preserve Social Security and Medicare
National Council on Aging
National Multiple Sclerosis Society
National Seniors Corps Association
Points of Light Institute
United Jewish Communities
United Way of America
YMCA of the USA
State Organizations
| Arizona Community Media Foundation | AZ |
| Gabriel's Angels, Inc. | AZ |
| Girls Scouts- Arizona Cactus-Pine Council, Inc. | AZ |
| Hospice of the Valley | AZ |
| Youth on Their Own | AZ |
| Yuma Conservation Garden, Inc. | AZ |
| Golden State Donor Services | CA |
| Jewish Family Service of Colorado | CO |
| Greater Washington Partnership for Palliative & End-of-Life Care | DC |
| Lutheran Social Services of North Florida | FL |
| Georgia Center for Nonprofits | GA |
| American Red Cross, Wyandotte County Chapter | KS |
| Jewish Family & Vocational Services | KY |
| Louisiana Association of Nonprofit Organizations | LA |
| Bethesda Health Center | MD |
| Maryland Association of Nonprofit Organizations | MD |
| Montgomery College | MD |
| Nehemiah Community Revitalization Corporation | ME |
| Bloomfield Township Senior Services | MI |
| Calvin College | MI |
| Communities in Schools of Lenawee | MI |
| Focus: HOPE | MI |
| Lenawee Community Foundation | MI |
| MARO Employment and Training Association | MI |
| Mercy Hospital-Port Huron | MI |
| Michigan Association of Nonprofits | MI |
| Volunteer Center of Greater Kalamazoo | MI |
| Goodwill/Easter Seals of Minnesota | MN |
| Minnesota Nonprofit Associations | MN |
| Humanitri | MO |
| Befrienders | MT |
| Heisey Youth Center | MT |
| North Carolina Center for Nonprofits | NC |
| Shepherd’s Center of Winston-Salem | NC |
| The New Hampshire Center for Nonprofits | NH |
| The Bach Foundation | NJ |
| Habitat For Humanity of New York | NY |
| Thousand Islands Area Habitat for Humanity | NY |
| UJA-Federation & Jewish Philanthropies of New York, Inc. | NY |
| NE Ohio Greyhound Rescue | OH |
| University Hospitals Case Medical Center | OH |
| Metropolitan Family Service | OR |
| Yamhill County CASA Program | |
