Mounted search and rescue

["irvin lichtenstein" <ilichten1@verizon.net>]

>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.) Expansion--
The c4 is a social welfare organization and not always a direct action
organization. By statute a volunteer fire, EMS or Rescue organization
qualifies as a c3, which also allows members or the public to deduct
contributions, including cash expenses.  The c4 category is the category now
being used by political action committees because under current IRS rules
they can lobby (as long as they don't say vote for x) and do not need to
disclose donors.  The other categories have limitations on activities. Some
are for colleges, some are for animal husbandry, and so forth. There may
also be other advantages to being a c3-- exemption from state and local
taxes, exemption from sales and use taxes, eligibility for no charge
services from Federal agencies, like the FCC for radio licenses.

Local and state governments, and some of their creations, are tax exempt
because the Supreme Court said so in the US Bank cases (Maryland lost trying
to tax a federal agency). In many cases volunteer fire companies, EMS, and
rescue squads have filed for c3.  State agencies usually provide some
benefits for volunteering, such as insurance.  Some local agencies are not
donation deductible because they operate other, revenue generating,
services. Get a program description from the agency involved to have handy. 
And when raising funds for your organization make sure the activity is not
characterized as an "unrelated business".  The National Geographic Society
pays taxes on the magazine and TV network for instance. 
>4. Pay by check or credit card and keep boxes of paper around in case 
>you are audited.
The IRS looks for proof of expenditure and what it was used for. Checks and
credit cards can be verified with the bank or card company which is
especially important with on-line banking. And there is something about
having several boxes of records sent over when requested.  Irv always writes
down on the cash receipt what it was for immediately, especially for lunch
at the local convenience store.  
Also, check on what your state or locality allows as a deduction.
Pennsylvania's categories do not match the federal categories exactly and
you may need to substantiate claims differently in your state filings.
Sometimes this may cost you a fee-- many banks now charge for paper
statements.

>5. File your US taxes electronically and use the error checker
Taxes filed electronically have a lesser probability of being audited
because the error checker eliminates most audit flags.  The cost of tax
preparation software, professional advice, is deductible by the way. 

The long and short of it is: Keep good records and try to deduct it.  Worst
case is you have to pay up later, best case is you set a precedent for your
filings forever. 
Irv Lichtenstein