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August, 2025

How Volunteering Can Earn You a Big Tax Deduction

Most people volunteer out of a sense of duty or compassion, not for a tax break. But if your good deeds can also earn you a deduction from Uncle Sam, why not take it? A deduction could help you give even more, both of your time and your money.

What Volunteering Expenses Can You Deduct?

To qualify, expenses must be directly connected with the services you provide, unreimbursed, incurred only because of the services you give, and not personal, living or family expenses.

If these criteria are met and you itemize deductions on your federal return, you may be able to write off a wide variety of out-of-pocket costs related to your volunteer work. However, it’s important to understand what qualifies—and what doesn’t.

What You Can’t Deduct

You cannot deduct the value of your time or services. For example, if you’re an attorney and you perform pro bono work for a charitable organization, you cannot deduct what you would normally bill for those hours. Similarly, if you volunteer at an animal shelter on weekends, you can’t deduct the equivalent hourly wage.

The IRS draws a clear line here: only actual, unreimbursed out-of-pocket expenses are eligible.

What You Can Deduct

You can deduct mileage if you drive your own vehicle while doing work for a qualified charitable organization. For 2025, the IRS’s standard mileage rate for charitable activities is 14 cents per mile. You can also deduct parking fees and tolls, as long as they are not reimbursed.

If you choose not to use the mileage rate, you can deduct actual unreimbursed costs for gas and oil, though general repairs and depreciation are not allowed.

If you travel away from home while performing services for a charity, your transportation, lodging and meals may be deductible, as long as there’s no significant element of personal pleasure, recreation or vacation in the trip. This includes airfare, hotel accommodations, taxis or public transit, and meals if your service requires you to be away from home overnight.

Meals associated with overnight charitable travel remain 100% deductible under current IRS rules for 2025.

Items you purchase to use while volunteering—such as office supplies, postage or uniforms not suitable for everyday wear, may also be deductible if they are used solely in connection with your volunteer services.

If you help organize or run a fundraising event for a qualified charity, any unreimbursed costs you incur for materials, printing, food or venue expenses may be deductible as long as they directly support the event and are not reimbursed by the organization.

Keep Good Records

As with all deductions, documentation is critical. Keep detailed receipts and records for each expense.

If your unreimbursed expenses exceed $250 for a single activity or event, you must obtain a written acknowledgment from the charitable organization describing the services you performed and confirming that you were not reimbursed for those costs.

This documentation should be retained for at least three years in case of an audit.

Be Sure the Organization Qualifies

Only expenses tied to services provided for organizations that the IRS recognizes as qualified charities are deductible.

This typically includes churches, nonprofit schools and hospitals, public charities and other 501(c)(3) organizations. If you are unsure whether an organization qualifies, you can check its tax-exempt status using the IRS’s online search tool at irs.gov.

Conclusion

Volunteering is one of the most generous and rewarding ways to give back. But it doesn’t hurt to know that some of your expenses might be deductible. If you’ve spent your own money while helping others, be sure to consult your tax advisor to determine whether those costs may reduce your tax bill.


Disclaimer 

Author: Service2Client

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