How to Save Money by Volunteering

Sixty-four million people volunteered in 2011.  Where you one of them? Volunteering gives you the chance to make a difference in someone’s life. You can use your skills to help improve a community or impoverished area.  Volunteering can help you gain skills that may be used to gain employment or get a promotion such as:  organization, communication and writing skills, time management skills, planning and budgeting skills or leadership skills. Volunteering helps students when applying for college or when applying for a job.

Volunteering gives you the opportunity to get experience in an industry that you would like to work in.  Volunteering gives you an opportunity to meet new people.  Volunteering can help you build relationships and partnerships with organizations. 

Volunteering has lots of benefits such as reducing medical costs and health issues.  Volunteering can increase your self-confidence and self-esteem.  Volunteering eliminates depression by reducing social isolation. Volunteering keeps you in regular contact with others which protects you against stress when you’re going through difficult times.  Volunteering:  reduces chronic pain through physical and mental interaction with others, lowers drinking binges in students and can reduce physical ailments for volunteering events that require physical activity.

Volunteering can also help you save money through perks.  When volunteering you may get perks but don’t let that be your only motivation.  Perks are a bonus.  Some perks you may get for volunteering are:  

• Vouchers
• Discounts or free admission to events
• Free coupons
• Free memberships 
•  Free magazine subscriptions 
•  Retailer discounts 
•  Discounts on training

Volunteering with the National Park Service can reduce vacation costs.  If you decide to go to the Grand Canyon and volunteer you can save money on camping, park entry fees, and transportation costs.  If you volunteer with Global Volunteers you may get:  get your room, in-country travel, food, airport pickup for free.   Volunteering at hospitals can get you:  free parking , discounted prices on select special events , free annual flu shot, discounts at the gift shop and pharmacy, free meal , free access to hospital libraries and computer work stations, educational opportunities, and free access to fitness center and health screenings.

Serving as a chaperone you can get free paid vacations.  Serving as an usher for music events you can get:  a free view of performances, free tickets to future events, discounts on souvenirs and food, and invitations to special events.  There are several volunteer rewards programs available such as:

• Volunteer with County Music Television One Country and you're automatically eligible to win tons of prizes that range from a free 1 year subscription to a Ladies' Home Journal  magazine or $1,000 donated to the charity of your choice.
• The Washington Post offers readers PostPoints, its reader rewards program which gives discounts to retailers and exclusive events.

Volunteering at the Peace Corps or Ameri Corps you can get:  student loan repayment assistance, language, cross-cultural, and technical training, a monthly living and housing allowance, full medical and dental coverage and 48 paid vacation days. 

Volunteers in the U.S. can receive tax deductions from the federal government on costs associated with volunteering, such as travel expenses, parking, mileage, convention attendance fees, etc. if you are not getting reimbursed for the expenses by the organization you are assisting and you are itemizing on your tax form.   You can write off any expenses you pay to the organization as long as they're a non-profit.

How to Deduct Free Services on Your Taxes

The IRS provides hundreds of deductions that taxpayers can claim but many taxpayers are not aware of them. No one has the time or wants to read through all of the tax forms and instructions to find out what they are. A good resource to find hidden tax deductions is the book, Lower Your Taxes by Sandy Botkin.

There are tons of hidden tax deductions that can be claimed. One hidden tax deduction that tax payers can claim is free services. Here are 9 ways to deduct free services and other expenses on your taxes.

1. Pro Bono. Pro bono is when you donate your time and services for free or at cost. If you donate time and services for an event but ask for payment to cover traveling expenses - the time and services are considered donated and can be deducted. However, the services must benefit the general public.
2. Free Services. If you provide free services to a charity you may have to claim the income for the value of the job as if you got paid even though you didn’t. For example if you are a speaker and provide a seminar to a charity and would normally get paid $1,000, you may have to report $1,000 on your taxes. Talk to an accountant to or contact the IRS tax help line to get specific tax information about the services provided. The services must benefit the general public.
3. Volunteer Work. If you volunteer your time and services to help a charity you can deduct: costs for hosting a party or fundraiser for an organization, supplies purchases which are required to perform volunteer work, cost of a uniform or clothing required to perform volunteer work, telephone expenses, and travel expenses such as parking, tools, gas, miles traveled, etc. Keep receipts of all expenses.
4. Food. You can deduct food and tips as long as you have the receipts as proof of payment.
5. Entertainment. You can deduct entertainment expenses except for alcoholic beverages.
6. Expenses. You can deduct “ordinary” and “necessary” expenses associated with or necessary for your job especially for a trade. Ordinary expenses are common expenses for your trade or profession. Necessary expenses are those that are helpful for you to perform your job and apply to full-time or self-employed employees.
7. Travel Expenses. Some travel expenses can be deducted if they were incurred to benefit a charity. Travel expenses that can be deducted include: hotel costs, rental car and airline tickets.
8. Business Meetings. If you attend conferences or business meetings for your job you can deduct travel expenses includig the cost to drive to the event if you are not reimbursed by your job.
9. Car Mileage. If you use your car for your job or business and use it for that reason only, you can deduct the entire operation costs. If your car is used for your job and business you can only deduct the cost for business use. You can deduct mileage usage using one of two methods: the standard mileage rate or the actual expense method.

The deductions are only allowed if you itemize your deductions. Visit the irs.gov website to get more information.