Press Release of Senator Feingold

FEINGOLD BILL WOULD HELP CHARITIES ATTRACT VOLUNTEERS

Volunteer Mileage Reimbursement Act Would Raise the Level of Reimbursement for Volunteer Drivers

Wednesday, January 21, 2009

Washington, D.C. – U.S. Senator Russ Feingold reintroduced legislation today that would help charities retain and attract volunteer drivers.  The Volunteer Mileage Reimbursement Act would raise the level at which organizations can reimburse volunteer drivers for mileage costs without a tax consequence.  Feingold's bill would raise the reimbursement rate for volunteers from the current level of 14 cents per mile to the same rate at which businesses can reimburse employees, currently 55 cents per mile.   

“In tough economic times like these, it can be a challenge for charities to attract volunteers and with a reimbursement level so low, it becomes even harder,” Feingold said.  “We need to raise the reimbursement rate for volunteers so that organizations committed to the well-being of others are able to attract volunteers and help those in need.”

Feingold originally introduced the legislation in 2002 after he heard about the senior meals program run by the Portage County Department on Aging at his Portage County listening session. Volunteers who had together logged thousands of miles delivering meals said they could no longer afford to offer their services under the old reimbursement limit. Without volunteers, the costs of the program would greatly increase because the services that had been provided by the volunteers would have to be contracted out. The Department's increased costs would come directly out of the pot of funds available to pay for meals and other services.  Last year, more than 100 charitable groups including the American Red Cross called on Congress to address the problem.  Feingold’s bill is also included in the GIVE Act, a larger bipartisan bill introduced by Senator Ben Cardin (D-MD) which addresses some broader issues related to volunteer mileage reimbursement.