Substantiation rules for out of pocket charitable expenses?

Substantiantion rules for out-of-pocket expenses

I believe the rules are not that simple. One key is whether you spent the vast majority of your trip working on this project. I also believe the exempt organization has to sign off on the trip. And based on the assumption you traveled from Denver to New Orleans, questions could be asked about whether it was reasonable for you to travel to this specific location when there is a likely chance similar projects were taking place closer to home. Much of the information can be found in IRS Publication 526, Charitable Contributions. The paragraphs below are from Pub 526 regarding Travel. Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. This applies whether you pay the expenses directly or indirectly. You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. However, if you have only nominal duties, or if for significant parts of the trip you do not have any duties, you cannot deduct your travel expenses.

Answer

According to Bill Roos, EA, the rules would be essentially the same as for an employee doing business travel. Since the costs are not business related, they are not subject to the limits that apply to business expenses. Because there is no standard meal allowance for charitable travel, the taxpayer will have to keep very good records.

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