Mounted search and rescue

[Una Smith <una.smith@att.net>]

In this post I quote some comments by Irv and respond to them, but please
note that although I use the word "you" I am not addressing Irv personally.
Rather, I am contributing to --- expanding --- our collective discussion.

Irv Lichtenstein wrote:
>Pro rating expenses, once the precedent has been established can be fairly
>easy.  The mileage rates for charity are very low but if you use half of
>your mileage to go to searches, training, clinics, whatever it can be
>useful.

The mileage rate for charity is far below actual cost given current fuel
prices, but if you pro-rate expenses you don't have to use the set mileage
rate.  You can deduct actual cost instead.  This is good for those of us
who are doing SAR with a big truck not an economy car.


>There are several necessities you have to follow to collect:
>1. Be a bonafide member of an IRS 501c3 organization (not a c4,5,or 6 etc.)

An IRS 501(c)(4) organization is okay too, provided it is a rescue
squad (SAR, volunteer fire, etc).  That is, it must have strictly
charitable activity, not merely charitable purpose.  It is an aside
but all such organizations are being transitioned from 501(c)(4) to
501(c)(3).  Under 501(c)(4) the organization cannot do fundraising.
This is because although fundraising may have a charitable purpose
it is not a charitable activity.  For this reason, many old rescue
squads went so far as to form a second nonprofit org, a 501(c)(3)
for fundraising with the charitable purpose of supporting the 501(c)(4).
We have talked about all this here on MSAR-Riders in previous years.
Here in New Mexico, Santa Fe County Sheriff's Posse was one of those
old 501(c)(4) rescue squads;  a few years ago they changed over to
501(c)(3).

Also, being a bonafide member of a volunteer program of a government
agency is okay.  I do not need to be a member of any nonprofit in 
order to deduct my contributions to NM SAR.  NM SAR is a volunteer
program of a state agency having jurisdiction.  In many other states
SAR teams are volunteer programs of a county sheriff's office.  For
purposes of claiming deductions on US federal income taxes it is not
necessary that there be a registered nonprofit organization anywhere
in the picture.  The IRS states that "Charitable contributions to
governmental units are tax-deductible under section 170(c)(1) of the
Internal Revenue Code if made for a public purpose."  If questioned
about this by an accountant or other person, you may want to provide
this link:

http://www.irs.gov/Government-Entities/Federal,-State-&-Local-Governments/Governmental-Information-Letter

I have discussed all this at length with a senior person in an IRS
field office here in New Mexico.


>4. Pay by check or credit card and keep boxes of paper around in case you
>are audited.

Cash receipts are acceptable.  In a pinch so are notes in a log book.


>5. File your US taxes electronically and use the error checker

Electronic filing is not necessary, although the error checking it
does is helpful.  Tax preparation software such as TurboTax, which
does error checking and helps find additional deductions you may
qualify for, can be well worth the price.

        Una