HANO urges Congress to increase charitable mileage rate

The Hawaii Alliance of Nonprofit Organizations has sent letters to members of the Hawaii Congressional delegation in support of a national effort by nonprofit associations to increase the charitable mileage rate from 14 cents per mile to the standard business mileage rate, which the IRS just increased to 58.5 cents per mile. Here is the text of the HANO letter:

Dear Senators Inouye and Akaka and Congress Members Abercrombie and Hirono,

I am writing to urge your support for HR2020, a bill that would raise the charitable mileage rate to the standard business mileage rate of 58.5 cents per mile and thereby encourage volunteerism. As gas prices exceed $4.25 per gallon, Hawai‘i face both increased demand for their services and shortages of available volunteers.

Currently, volunteers who use their cars for charitable service can deduct 14 cents per mile from personal income taxes, which clearly no longer covers even the cost of fuel. The charitable rate hasn’t increased since before 2002 when gasoline prices were much lower. At the same time, the standard business rate is variable. It changes every year and has increased markedly since 2002.

Raising the charitable mileage rate to 58.5 cents per mile – the current rate for businesses – would simplify the tax code, provide equity between charities and for-profits and remove a disincentive to volunteerism on which charities rely to relieve government from providing services and to improve the quality of life in Hawai‘i. Volunteers serving the community should not be penalized for helping the less fortunate.

Your support for H.R.2020 is urgently needed, given the economic slowdown’s impact on charities. For many organizations, such as Meals on Wheels, soaring gas prices are devastating.  Please support HR2020 and help sustain volunteerism in Hawai‘i.

Aloha,

John Flanagan
President and CEO
Hawaii Alliance of Nonprofit Organizations