Charities Ask Congress to Raise Tax Deduction for Charitable Mileage

Charities are feeling the pinch at the gas pump and have now asked Congress to intervene, reports The New York Times.

The high cost of gas has placed pressure on volunteers who use their cars to help with nonprofit activities. More than 100 groups, including the American Red Cross and Catholic Charities, have signed a letter asking Congress to increase the tax deduction for people who use a personal car while volunteering.

The current rate is 14 cents per mile. Corporate employees receive 58.5 cents per mile for business use. A bill expected to be introduced in Congress today would raise the charity rate to 70 percent of the corporate rate, the newspaper says.

It has been 10 years since the Internal Revenue Service last raised the tax deduction for charitable mileage, apart from adjustments for inflation. Sen. Charles E. Schumer, of New York, a co-sponsor of the bill to raise the rate, said of the lack of change, “It’s really absurd.”

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