CHECKPOINT
| AVA CHECKPOINT |
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| Official Voice of the American Volkssport
Association 1001 Pat Booker Road, Suite 101 Universal City, Texas 78148-4147 Phone (210) 659-2112; Fax (210) 659-1212 |
| Volume 15, Number 5 | May 2007 | |||
| TAW Deadline The deadline for the June, 2007 issue of The American Wanderer is April 25. All articles and photographs should be submitted directly to: The American Wanderer, Laurel Parrott, Editor, and 3526 Humboldt Ave. N., Minneapolis, MN 55412, email TAW@bhi.com Be sure to include "TAW" in the subject line of the email. NOTE: This is a new email address. |
| IRS Q&A by Bob Wright Have a
question or comments? Send them to Bob at rcwright_va@adelphia.net
Disclaimer: Bob is not a tax
professional and voluntarily spends his time to research, compile and write
this column giving general guidance and advice. AVA clubs should always check
with a professional when faced with an accounting or tax-related decision.
May members deduct expenses incurred in service to our club at income tax time? Yes, provided certain conditions are met. Are you a 501(C)(3) tax-exempt organization? If your club has a determination letter to this effect from the IRS or is covered by the AVA¹s group exemption (you got a letter from Jackie Wilson last August), you qualify. Should you have a different determination from the IRS, e.g., as a 501(c)(4), or none whatsoever, you are not eligible. Only if you itemize deductions, may you claim deductions for expenses provided in giving service (i.e., volunteer work) to a 501(c)3) organization on Schedule A, Gifts to Charity section. Deductions are subject to associated IRS rules. What are the rules for out-of-pocket expenses? They must be unreimbursed, directly connected with giving service, only incurred because of the services you gave, and not personal, living, or family expenses. (If you receive a daily stipend for a meeting that exceeds your actual expenses, you must declare the excess as income.) Okay, so what out-of-pocket expenses are deductible? As a delegate for your club to the AVA convention. This includes travel and transportation, and a reasonable amount for meals and lodging, but not for sightseeing, entertainment, or other family members. Retain your receipts; those not reimbursed by a club or clubs are eligible for deduction next year. (Refer back to February¹s Q&A for a discussion of delegate expenses and reasonable amounts.) The cost of travel to/from your place of volunteering (actual costs or 14¢ per mile) plus parking and tolls. Car travel has additional conditions. You may not claim unreimbursed expenses for upkeep and maintenance, insurance, repairs, depreciation, or registration fees. There must be no significant element of personal pleasure, recreation, or vacation involved. You must be on duty in a genuine and substantial sense throughout the trip. If you have only nominal duties, or if significant parts of the trip involve no duties, you may not deduct your travel expenses. What¹s not deductible? Examples: the value of your time; a babysitter or child care while you are volunteering. Be sure you keep reliable written records. For expenses under $250, a canceled check, receipt from the organization with the date of the donation and amount, or other reliable record (i.e., a personal record kept regularly and updated at the time of the donation or shortly thereafter) with the same information. If an individual expense exceeds $250, you need a written acknowledgement from the organization substantiating the donation (date, amount, whether or not reimbursement was received in whole or in part, a description and good faith estimate of the value). When do you need written acknowledgement from your club? If you attend state association meetings as a delegate and for each your mileage (at $0.14/mile) plus a reasonable amount for lunch does not exceed $250, you do not need it. If you attend the AVA convention as a delegate and your unreimbursed expenses exceed $250, you must get an acknowledgement. If your total unreimbursed expenses for the year exceed $250, but no single expense I your records exceeds $250, you do not need it. For car travel your reliable written record would include the date, name of organization, and, if claiming the standard mileage deduction, the number of miles. If you claim actual expenses, you must show the costs directly related to the charitable purpose. For club members who plan and/or maintain year-round, seasonal, and weekend events, the following examples from the IRS deserve your attention: You work for several hours each morning on an archeological dig sponsored by a charitable organization. The rest of the day is free for recreation and sightseeing. You cannot take a charitable contribution deduction even though you work very hard during those few hours. You spend the entire day attending a charitable organization¹s regional meeting as a chosen representative. In the evening you go to the theater. You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. If you don¹t have them yet, obtain IRS Publications 526, Charitable Contributions, and 1771, Charitable Contributions Substantiation and Disclosure Requirements for your reference. |
| Your Club's Vote at 2007 Convention
To ensure that your club has a vote at the upcoming AVA Convention, ALL club
functions must be brought current. No report, stamp, or financial matter may be
delinquent if your club wishes to vote. All items must be in the National Headquarters no later than Monday, May 14 by close of business (5pm Central Standard Time). Anything not here will cause your club to lose their vote. If you have any doubts on whether something has been submitted, please call (210-659-2112) or email (avahq@ava.org) to check on it prior to this date. |
| IVV World Report The IVV World Report can be found on the IVV web page. You can get to this page by going to www.ava.org and then to related links. Click on the link to the IVV. |
| Reminder If it looks like your After Action Report is going to be late, you have the option of faxing it to AVA Headquarters (210-659-1212). The report is what generates the late fee, not the payment, so get the report in and let us bill you for the amount due. We can't accept coupons this way but you can simply hold those and submit them with your next report. If you fax your report, please DO NOT send a hard copy as well. Double paperwork can lead to a double billing. Thanks! |
| Publicity Contest — by Joan Lampart, Publicity Chair. Many thanks for all the entries in the AVA Publicity Contest. All entries are unique and it will take the judges a long time to find four in each category as winners. I hope you will come to the AVA Biennial Convention in Sacramento to see a display of the winning categories. |
Important Dates:
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