Days after Newsday reported that charities were having a hard time keeping and recruiting volunteers due in part to the rising gas prices, Sen. Charles Schumer called for tax relief for volunteers.
Schumer (D-N.Y.) and John Ensign (R- NV) announced today they have offered bipartisan legislation to dramatically increase the size of the tax deduction for miles driven while performing charity work. The senators' proposal would nearly triple the current rate of 14 cents per mile--which hasn't been increased since 1997--to better keep pace with the record spike in gas prices.
The bill, called the Giving Incentives to Volunteers Everywhere (GIVE) Act of 2008, is co-sponsored by Senators Christopher Dodd (D-CT) and Russ Feingold (D-WI).
"Right now, charities are being punished because the law has not kept pace with the spike in gas costs. This fix will allow volunteers to keep doing their important work despite the pain at the pump....
Joie Tyrrell
...."The size of the deduction for volunteer work is paltry and antiquated. It's almost inexplicable that there is such a gap between the business rate and the charitable rate," Schumer said.
Many nonprofits have seen their gas bills increase by double digits. Catholic Charities, Diocese of Rockville Centre, for example, spent 27 percent more on gas expenses for senior programs this year than last. Education & Assistance Corporation has lost four volunteers out of about 20 in the past few months, officials there said. They will still be able to feed the people who need their services but are worried that they may have to cut back on those who visit the homebound.
"We can see that going," said Carol O'Neill, regional director of senior and nutrition services for Education & Assistance Corporation based in Hempstead. "We can see people reluctant to spend more time because it is costing them money to do so."