New Developments

2008 Mileage Allowance . An individual who drives a car in performing volunteer services for a 501(3) organization may take a standard mileage deduction of $ .14 per mile in 2008. Note that volunteers may not deduct the value of services performed, but may deduct actual expenses incurred for the benefit of a 501(c)(3) organization.

IRS “Advance Ruling” procedure eliminated. As of September 9, 2008, the IRS has eliminated the “advance ruling” procedure, whereby a new organization had to go through a five-year, two-step process to obtain a final IRS determination of its public charity (rather than private foundation) status.  Now, a new organization that demonstrates (on its application for exemption) that it reasonably expects to be publicly supported will automatically be treated as a public charity for its first five years.  As of its sixth year, the organization must demonstrate that it meets the test for public charity status on an ongoing basis. The new procedures also apply to organizations that had advance rulings in place as of September 9, 2008. For more information see the IRS Website