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Your Input Needed on Volunteer Mileage Reimburseme...
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There are two bills in Congress regarding changes to charitable volunteer mileage reimbursement. Both bills attempt to solve the problem of volunteers needing to report as income the difference between the IRS reimbursement rate (58 cents per mile) and the charitable volunteer reimbursement rate (14 cents per mile), if a nonprofit chooses to reimburse at 58 cents per mile. It would also remove the necessity of nonprofits providing a 1099-MISC to volunteers who are reimbursed more than 14 cents per mile and the total amount exceeds $600. We would really appreciate hearing from MAVA members about how these two approaches would affect Your work.

Here is more information about the two bills:

Representative Carolyn Maloney (NY-12) introduced H.R. 3323 in June 2019. The bill has three parts and one of them is targeting the charitable mileage reimbursement rate. Rep. Maloney’s bill states that any reimbursement up to 58 cents per mile will not be taxed. Her bill would not require nonprofits to pay out 58 cents per mile if they do not choose to do so. With her bill, nonprofits would not have to distribute Form 1099-MISC for volunteers and volunteers would not have to count reimbursement as income.

Representative Collin Peterson (MN-7) introduced H.R. 2072 in April 2019. His bill would increase the current charitable volunteer mileage wage to 58 cents per mile. There would then be no difference between the charitable rate and the standard rate, so nonprofits would not need to distribute Form 1099-MISC for volunteers and volunteers would not have to count reimbursement as income. However, nonprofits would not have an option of reimbursing volunteers 14 cents per mile for mileage.

There is not a high likelihood that either of these bills will become law soon. However, the more information we can gather now, and the more we can support the best solution to the problem, the better off we’ll be when the timing is right! We are partnering with the Minnesota Council for Nonprofits to formulate a response about these bills.

Please send your thoughts to Ileana Mejia, MCN public policy advocate, at imejia@minnesotanonprofits.org with a copy to me at kbulman@mavanetwork.org.

We really appreciate any feedback as we formulate our position!

Karmit
Karmit Bulman| Executive Director
Minnesota Association for Volunteer Administration (MAVA)
1800 White Bear Ave. N., Maplewood, MN 55109
651-255-0468 direct dial | 651-255
 
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